Instrument: GBPJPY
Technical Analysis
Bullish Preference:
A buy position is envisaged if price trades above price 153.488 with take profit at price 153.654.
Bearish Preference:
A sell position is envisaged if price trades below price 153.081 with take profit at price 152.958.
Fundamentals:
No major fundamental.
Comment: The British Pound has managed to outperform against most of its G10 FX counterparts this week, scoring outsized victories against European counterparts like the Euro, Norwegian Krone and Swedish Krona. The move may reflect pre-positioning ahead of today’s Bank of England (BOE) policy announcement.
This probably amounts to speculation that the BOE will move faster to reduce Covid-era stimulus than regional peers, where a committed dovish tilt persisted long before the pandemic. Tellingly, inflation expectations priced into UK bond markets rose alongside Sterling this week.
Analysis: SCRUM Team