Baxia Markets
March 21, 2024

GBPJPY Bulls Pause Ahead of BoE Rate Decision

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The GBPJPY pair saw strong bullish momentum yesterday, closing approximately 150 pips above its opening price. However, today, the market appears to be taking a breather as traders await the Bank of England's (BoE) interest rate decision.

Analysts predict that the BoE will maintain the current interest rate, contributing to the market's current sideways price action. This pause in advancement suggests that investors are awaiting the convergence of the Exponential Moving Averages (EMA) 50 and 200, with expectations that the market may test the EMA 50 before resuming its upward bullish trend. Moreover, the EMA 50 is anticipated to provide key support in case of a retest of today's recent low.
A glance at the Bollinger Bands reveals consistent trading on the upper side, occasionally breaching its upper boundary. The wide band width indicates continued strong volatility in the market.

Turning to oscillator indicators, it appears that both the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) are showing signs of losing momentum. Despite prices reaching new higher highs, these indicators have made new lower lows. However, the MACD signal line remains bullish, hovering above the 0 line, while the RSI also maintains a bullish and stable position near the 50% level.

In summary, the GBPJPY pair is currently experiencing sideways movement with an underlying bullish sentiment. As traders await the BoE rate decision and monitor technical indicators, the market remains poised for potential further upward movement once the current consolidation phase concludes.


Key Economic Releases to Watch Today

GBP,  BoE Interest Rate 

Forecast 5.25% vs Previous 5.25%

USD, Initial Jobless Claim

Forecast 212K vs Previous 209K

USD, Philadelphia Fed Manufacturing Index

Forecast -2.6 vs Previous 5.2

USD, S&P US Global Manufacturing

Forecast -2.6 vs Previous 5.2


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