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Brexit and BOE drama weakened the pound’s mojo last week. Will the bulls get their momentum this week?

Check out the other potential catalysts that other pound traders may be looking at:

Closely watched headlines

  • All eyes will be on PM Johnson’s flexibility on the current form of the Internal Market Bill, which could violate international law. Johnson has recently agreed to give MPs a vote before invoking powers in the bill that would break international agreements
  • U.K. lawmakers are also considering new COVID-19 restrictions, which could further delay the economy’s post-lockdown recovery
  • Both Markit manufacturing and services PMIs (Sept 23, 8:30 am GMT) are expected to print weaker activity in September after a strong bounce in August

Bank of England (BOE) related events

  • BOE Governor Bailey to speak at the British Chamber of Commerce webinar on Sept 22, 7:30 am GMT
  • BOE’s Bailey has another webinar at the North East England Chamber of Commerce on Sept 24, 2:00 pm GMT
  • BOE’s quarterly bulletin (Sept 25, 11:00 am GMT) could shed more light about why the central bank is now considering the possibility of a negative interest rate

Technical snapshot

  • Stochastic is marking GBP/JPY and GBP/NZD as “oversold” on the daily time frame
  • The rest of the pound pairs are also below the 50 mark
GBP Forex Pairs Stochastic from MarketMilk
GBP Forex Pairs Stochastic from MarketMilk
  • GBP remains in short and long-term bearish trends against AUD, NZD, EUR, and JPY
  • The pound is seeing short-term bullish pressure against USD, CHF, and CAD
  • Keep an eye out for retracement or reversal setups on GBP/USD
GBP Forex Pairs SMAs from MarketMilk
GBP Forex Pairs SMAs from MarketMilk
  • GBP saw the most volatility against AUD, NZD, USD, and EUR in the last seven days
GBP Forex Pairs Volatility from MarketMilk
GBP Forex Pairs Volatility from MarketMilk

Missed last week’s price action? Read GBP’s price recap for September 14 – 18!