New Month, New Week, New Attitude

It’s the first week of a new month in a new year. We will get a new attitude from a Bank of England that has scrapped its new forward guidance policy after less than an year of implementation. This action makes this week’s rate decision all the more interesting.

In the mean time, we have a slew of PMI data before Thursday. A disappointing manufacturing PMI number kicked off the week. With a miss to start the week, it could be very likely that data disappoints in construction today and service tomorrow. Trading yesterday took sterling to key swing levels in all the major GBP currency pairs. Price moves this week could start a trend. Here is where we stand ahead of today’s release.

EURGBP 60 MINUTE CHART

GBPUSD DAILY CHART

GBPJPY WEEKLY CHART

GBPCAD DAILY CHART

GBPNZD DAILY CHART

Long overdue for a correction, GBP could easily be a great buy or sell deeding on the market’s reaction to PMI data and the BoE this week.

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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