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The BOE is up today!

What are traders expecting and can we find an opportunity from Guppy’s chart?

You gotta know all about the previous sessions’ catalysts if you’re planning on trading the pound in the next few hours!

Major Forex Pairs Price Performance from MarketMilk
Major Forex Pairs Price Performance from MarketMilk

Upcoming Potential Catalysts on the Economic Calendar:

  • Switzerland’s trade balance at 7:00 am GMT
  • SNB’s policy statement at 8:30 am GMT
  • BOE’s policy statement at 12:00 pm GMT
  • Canada’s ADP non-farm employment change at 1:30 pm GMT
  • U.S. Philly Fed manufacturing index at 1:30 pm GMT

What to Watch: GBP/JPY

GBP/JPY 4-hour Forex Chart
GBP/JPY 4-hour Forex Chart

GBP/JPY is a few pips away from the 140.25 minor psychological level that has been serving as range resistance since mid-November.

Today’s Bank of England (BOE) event will tell us if the bears can hold the level for another day or if the bulls can find enough momentum to force an upside breakout.

BOE Governor Bailey and his gang aren’t likely to make policy changes ahead of any Brexit deal. We could see some dovish notes, though, which may be enough to inspire increased volatility among major pound pairs.

Pound bulls can look forward to continued risk appetite in the markets. And, if the BOE doesn’t share more concerns than they had in their last statement, then GBP/JPY could break all the way to the 142.50 previous highs.

Meanwhile, Guppy bears will have to watch closely in case the central bank shares red flags about the lack of a Brexit deal.

More Brexit concerns or a lack of progress on the U.S. stimulus talks could inspire profit-taking and drag GBP/JPY back to its 138.90 mid-range or 137.50 range support levels.