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All eyes were on the RBNZ during the Asian session after central bank members decided to double their asset purchasing program.

Will the next trading sessions inspire more volatility for the rest of the major currencies?

Before we explore one of the more attractive setups, here’s what you missed in the last few hours:

Currency Snapshot

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

Fresh Market Headlines & Economic Data:

Upcoming Potential Catalysts on the Economic Calendar:

  • U.K.’s preliminary GDP at 6:00 am GMT
  • U.K.’s manufacturing production at 6:00 am GMT
  • Euro Zone industrial production at 9:00 am GMT
  • Fed Governor Powell to make a speech at 1:00 pm GMT

What to Watch: GBP/USD

GBP/USD 1-hour Forex Chart
GBP/USD 1-hour Forex Chart

Data printed minutes ago showed the U.K. economy falling by 2.0% in Q1 2020, the worst since the 2008 Great Financial Crisis.

As bad as the numbers are, however, it’s still a tad better than the 2.6% decline that markets had expected.

GBP/USD looks like it’s bouncing from the 1.2250 handle that has been supporting the bulls since late March. In this case, it also represents a range bottom on the 1-hour time frame.

GBP/USD’s volatility analysis tells us that pound bulls still have 70 pips or so before pound bulls can see some exhaustion. This should put Cable at around the 100 SMA and a previous area of interest.

If you’re not sold on the pound maintaining its bullish momentum, or if you think that Powell’s speech during the U.S. session would cause a downside breakout, then you can also wait for a clear break below 1.2250 and aim for 1.2200 or 1.2150.