The GBPUSD still trapped in range bound area yesterday. Although we had better than expected UK positive numbers of Halifax HPI, Manufacturing Production and Services PMI, the bullish momentum still limited as the Greenback seemed to be supported by ADP’s worse than expected employment data. Today’s focus will be on BoE rate decision which expected to keep rate at 0.5% and statement about Quantitative Easing program. Market will anticipate whether BoE will continue to buying assets or decide to stop the program as we have seen a little evidence that the QE program succeed to boost the economy. It’sÂ not easy to decide the effect of that decision to the Cable, but since the market might see that the program brought no significant support for the economy, the sentiment might be positive for the Cable if BoE decide to stop the program.
On technical side, the GBPUSD attempted to push higher yesterday, topped at 1.7042 but further bullish momentum was very limited as the pair closed lower at 1.6991. I am still expecting further bullish continuation and 1.7100 remains a potential nearest bullish target. However CCI in overbought area and heading down on daily chart suggests potential downside correction, but as long as the pair stay above 1.6750 area, my technical view remains bullish. Immediate support is seen at 1.6890 area.