The British Pound / United States Dollar (GBPUSD) has been range bound for about a week. We’re currently seeing a test of the highs of that range with recent trading capped at yesterday’s high of 1.5721. Other recent 4 hour candles have not found any buyers at their highs either indicating we’re likely to see another test down to the lows or at a minimum a test near 1.5636 which can be seen as a demand zone.
Also, keep in mind that we see some heavy data pre NY open with the BOE Bank Rate followed by the ECB Bid Rate announcements. The economist consensus on Forex Factory shows both holding at their current rates, but there has been some speculation of ECB cutting rates. According to Bloomberg, “ECB policy makers meeting in Frankfurt will cut the benchmark interest rate by a quarter percentage point to 1 percent, according to 53 of 58 economists in a Bloomberg News survey.” It’s likely that London trading isn’t going to provide much momentum for moves either direction.
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