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Trade of the Week: GBPUSD primed for further upside?


By ForexTime 

This morning, the GBPUSD grabbed our attention after it hit a new 2023 high.

The sterling has been the best-performing G10 currency so far this year, with a gain of roughly 4.7% versus the dollar. This is due to both fundamental and technical factors.

The fundamentals are still in favor of the pound, with the BoE expected to raise rates and a weaker USD. Looking at the technicals we can see that prices are strongly bullish in the weekly timeframe. Next major resistance levels are around the Simple Moving Averages of 100 and 200 weeks.

This could be a volatile week for the GBPUSD and here are 4 reasons why…

  1. BoE Super Thursday  

Thursday, May 11th will see the Bank of England (BoE), make a monetary policy announcement.

This will also include the Monetary Policy Report for the quarter, making this a Super-Thursday combo.

The markets expect that the BoE will raise the interest rate by 25 basis points to bring the key rate up to 4.5%. The BoE is likely to raise rates again in the future, especially given the UK’s high inflation rate of 10.1%. Investors will be paying very close attention to the minutes, quarterly MPR and BoE Governor Andrew Bailey’s press…

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