The BOE ( Bank Of England ) will decide today about their interest rates and the event should provide huge volatility in the GBP currency basket. The BOE’s MPC meeting minutes provides the result of the interest rate vote for each MPC member during the most recent meeting.
The GBP/USD is currently trapped in a rectangle range and the breakaway gap hasn’t been closed yet. During my yesterday’s live trading webinar the GBP was very volatile but eventually dropped and turned trade into the profit. However, today the movement might be two fold, that’s why we should pay attention to potential breakouts. If the pair spikes above 1.2825 next resistance is 1.2845 and if it proceeds above we might see 1.2930-40. The bottom of the gap is very close to W H4 so the gap might be closed. On the contrary, if the pair drops below 1.2634 next target could be 1.2550.
