GBP/USD & BoE Interest Rate Decision: Will the downside pressure return to the Sterling?
Today at 11:00 GMT will be released the BoE interest rate decision, where the markets are expecting a rate cut by 25 bp. Currently, the rates stand at 0.50% and that could give the bears enough momentum to push lower the Cable towards the post-Brexit lows. 30 minutes later will speak the BoE's Governor Carney, where the markets will be closely watching, as it's speech could give us further hints in terms of economic measures for the United Kingdom in the mid-term, following the Brexit's outcome.
The technical picture for GBP/USD at H4 chart is still very bearish and also, it's trapped inside the post-Brexit range. A pullback is expected around the 1.3358 level towards the support zone of 1.2845 if the BoE's stance is dovish than expected and the central bank decides to cut rates. However, if there are no major actions by the BoE today, then we can see a slight rise and test the 1.3615 level, where the 38.2% retracement zone (from pre-Brexit's peak) is placed.