BOE Economic Outlook And The British Pound

Good morning Traders!

Today we have the UK Monetary Policy Report Hearings, where the BOE will be providing its inflation and economic outlook to the parliament’s treasury committee.


The Monthly chart of this pair is in a confirmed downtrend, and after a strong selloff to a new Lower Low (which also broke the 2010 lows), buyers have returned into the market, pushing the price up into it’s Moving Average. With the month of December printing a bearish rejection candle, and the month of January an indecision candle, more sellers have returned into this market.

On the Weekly chart, price has been printing a Lower High, and if and when the market will break through the level of around 1.61 it will also be confirming a downtrend on this timeframe.

On the Daily chart we can spot three recent touches around this level, and in each touch the market could not push higher then from the previous touch, thus printing Equal Lows and Lower Highs – a compression of price. I’d like to see another touch at this level for some further price compression, before a potential break. However, if the market will break through this level without another touch, then I’ll be
looking for a decisive close below this level and then a pullback to test this level from

Happy Trading!

Tamar Mehr

Tamar Mehr is a professional trader, neuropsychological trading mentor, FXGlobe Ambassador, and decision-making expert. She’s based in Brisbane, Australia.

Trading Advice Disclaimer:
Our Ambassador’s Daily Picks are not trading advice. These are informational articles covering the events which happened in the market already & scheduled events which are scheduled to happen in the Economic & Earnings Calendar.

General Risk Warning:
Trading leveraged products such as Forex and CFDs carries a high level of risk thus may not be appropriate and/or suitable for all investors. The investment value can both increase and/or decrease and the investors may lose all their invested capital. The content of this website does not constitute financial or investment advice. Any information herein is of a general nature and does not take into consideration your personal circumstances, investment experience or current financial situation. Under no circumstances shall the Company or affiliated Companies have any liability to any person or entity for any loss or damage in whole or part caused by, resulting from, or relating to any transactions related to leveraged products.