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GBP/USD binary signal - BoE Meeting - 08 Feb 2018

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Entry Price: 
Close Price: 
Expiry Time: 
21:00 GMT
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The Bank of England will be meeting today for its monetary policy meeting of this year. As widely expected, the Bank of England is expected to keep interest rates unchanged and its asset purchases intact at today's monetary policy meeting. The BoE meeting is expected to be released with the statement from the central bank at 12:00 GMT.

The Bank of England hiked interest rates last time in November 2017. This was the first rate hike from the BoE in a decade as the central bank raised rates by 25 basis points to bring the UK's interest rates to 0.50%. This was also the first rate hike after the UK voted to leave the EU in June 2016.

The rate hike in November came amid soaring inflation which peaked at 3.1%. The BoE sought to hike rates in order to contain inflation which has remained stubbornly above the BoE's 2% inflation target rate. Following the November's rate hike, the UK's inflation was seen easing to 3.0% thereafter indicating that the rate hike helped to contain rising prices.

Recent economic data has shown that with inflation steadying at the current levels, the UK's wage growth has managed to catch up with slightly with rising consumer prices. Wage growth was weak amid surging inflation which in turn started to put pressure on the household income and spending.

Based on the above, today's binary signal is GBPUSD. The currency pair has been in a short term downtrend after the support level at 1.4037 was broken. However, the declines are likely to be limited to the current lows ahead of the BoE meeting.

Therefore, we are looking to purchase daily CALL options at 1.3855 for a 21:00 GMT expiry time. We expect GBPUSD to form a temporary base at the current levels and potentially close higher on the day.

binary options signal gbpusd 08 feb 2018

Disclaimer: The article is written for informative purposes only and it is not financial advice. The author does not have any position in the currency pairs mentioned, and no plans to initiate a position. He wrote the article himself and expressed his own opinions. Readers should not treat any opinion expressed by the author as a specific inducement to make a particular trade or follow a particular strategy, but only as an expression of his opinion. All risks and coasts associated with online trading are your responsibility.