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GBP/USD forex signal - Bank of England Monetary Policy Meeting - 22 Mar 2018

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The Bank of England will be holding its monetary policy meeting today at 12:00 GMT. According to the economists polled, the central bank is expected to keep interest rates unchanged at 0.50%. The BoE had last hiked interest rates in November 2017.

At the most recent monetary policy meeting, BoE officials cautioned that interest rates could start rising faster than expected. This comes amid inflation staying well above the BoE's two percent inflation target rate.

Ahead of the BoE meeting, retail sales report will be released which could add to some volatility ahead of the central bank's monetary policy meeting.

Earlier this week inflation data for the year ending February 2018 showed that consumer prices rose at a slower pace of just 2.5%. This was weaker than the 2.7% forecast and inflation declined from 3.0% previously. Core CPI was also seen easing back.

Combined, the data was seen easing the pressure off the Bank of England. However, with inflation still above the 2% inflation target, the Bank of England is expected to send hawkish signals at tomorrow's meeting.

The forex signal for the day is GBPUSD. The British pound posted strong gains with developments from Brexit and weaker inflation and higher jobs growth adding to the positive momentum. In the near term, the upside momentum could keep GBPUSD well support.

Therefore, we see as ideal to go long on GBPUSD at 1.4100 with stops at 1.4075 while targeting 1.4200 as we expect to see GBPUSD closing higher on the day.

forex signal gbpusd 22 mar 2018

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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.