GBP/USD Outlook (21st June 2019)

• BoE Monetary Policy Summary
  
• GBP/USD testing key level
  

Price Movement
Since yesterday, GBP/USD has been moving indecisively within a 55pips range.

Trend
Recently, GBP/USD is trending upwards.

Important Issue
Yesterday, the Bank of England maintained interest rate at 0.75%.
Crucial points made in the statement:
- “Since the committee’s previous meeting, near-term data have been broadly in line with the May Report, but downside risks to growth have increased.”
- “Domestically, the perceived likelihood of a no-deal Brexit has risen.”
- “Increased Brexit uncertainties have put additional downward pressure on UK forward interest rates and led to a decline in the sterling exchange rate.”

The Monetary Policy Committee also highlighted that a smooth Brexit is necessary for an ongoing tightening of monetary policy in order to hit the 2% inflation target.

Technical
GBP/USD is testing the 1.27 key level.

Price Levels
Current Price: 1.26973
Next Resistance: 1.27400
Next Support: 1.26000