GBP/JPY & BoE Meeting: Will we see a rebound or a trend line's breakout?
Today at 11:00 GMT we'll have the BoE interest rate decision and analysts are not expecting a rate cut by the central bank, but the uncertainty is there because the Brexit's shadow is still around and there are still questions by the people about the future of British economy for coming months. Also, the BoE MPC members will hold their latest meeting of the year, as they will stop doing monthly meetings. If we see a rate cut, most probably the Sterling will test new lows across the board.
Our technical picture for GBP/JPY at H4 chart is still showing a bullish cycle that respects the bullish trend line projected from the August 16th low. Currently, a resistance can be highlighted at the 136.97 level, where the sellers could push lower to the pair. During the meeting, we may see a breakout of that trend line and if that happens, then the next target would be the support level of 133.68.