GBP/USD Price Forecast – British Pound Choppy After BOE Comments
The British pound has been rocked rather hard during early trading on Wednesday as Bank of England Gov. Bailey stated that the central bank was going to be increasing bond purchases to deal with higher yields. That of course makes the British pound a little less attractive than before, but at the end of the day we did see a significant bounce and of course we have Jerome Powell at the end of the day on Wednesday that will have a major part of play in this market as well.
GBP/USD Video 17.03.21
At the end of the day on Wednesday, the Federal Reserve will have its FOMC announcement, and the world is waiting to see whether or not the Americans will do something about bond yields. If they do, we could see this market turn right back around as it would simply be a continuation of the overall trend to begin with. The 50 day EMA underneath did offer support, just as the uptrend line seems to have. If we can break above the high of the trading session, then we could see the British pound reach towards the 1.40 level yet again. The fact that we have recovered so quickly is a good sign, and Jerome Powell could but the “final nail in the coffin” if he does in fact address yields during the question and answer part of the session. We are still in an uptrend, and there is no reason to find it at this point in time, especially as we have seen a complete turnaround and rather short order. This tells you what the market wants to do, so now comes down to whether or not Jerome Powell gives it what it needs.
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