BoE's Carney speaks today: Possible effects on GBP/USD
After the ECB president Draghi's speech, BoE Governor's Mark Carney will speak today in Oxfordshire at 13:00 GMT, where is expected to produce more volatility in GBP pairs, that also has been showing weakness in recent days. If someone is expecting that Carney will mention the Brexit, it should be taken in mind that the Governor has been criticized for his more recent speech, because that's showing partiality from Bank of England in terms of Brexit referendum. With that being said, Carney could have more caution when he does another mention of Referendum's efect for British economy, at least not with “direct” words.
That doesn't void the fact that the speech could have high impact in GBP pairs, as the uncertainty remains among investors, which also are very cautious with the UK economy's comments from officials before the Referendum. In a technical outlook, the daily chart of GBP/USD is showing a pullback from the 1.4689 level, where is located the 100.0% Fibonacci extension connecting the levels of 1.3851 (low), 1.4514 (high) and 1.4004 (low). A dovish speech from Carney will push lower the Cable towards the bearish trend line projected from the 1.3851 level, while a hawkish scenario will put the pair in focus to re-test the 100.0% extension mentioned above.