I have attached an hourly GBPUSD chart which you can click on for a larger view. The obvious things to glean from this chart include:
1. Short term support at 1.4330
2. Upward sloping channel support at 1.4330 (spooky! its never a coincidence in my book)
3. 50 Period MA at 1.4200
4. Moderate resistance at 1.4500 still (the recent spike to 1.4600 was not sustained so i am reinstating the 1.4500 level as resistance). Last time we were above 1.4600 was back on the 20/1/09
5. There is lots of room to fill in within the 1.4500/1.5000 range which to me is like a red rag to a bull.
As Sam mentioned previously, is this rate cut priced into the Cable and will the move to 1.0% be the catalyst needed to step up into the 1.4500/1.5000 range? I guess we will have to wait until 12:00 GMT (11pm Sydney, 7am NYC) to see the outcome.
Here is a story to read about the BOE and ECB’s potential rate cutes.