Daily Chart
GBP/AUD break structural support just below 1.52, hinting at a bearish breakout just before Bank of England Rates announcement approx 5 hours later. Most analysts polled believe BOE to hold rate steady this time round, with no changes to the Asset Purchase Target. Should the analysts call it right, this development will be pro GBP strength. An unlikely scenario of rate cut/expansion of Asset Purchase Target will certainly drive prices lower towards the base of the triangle around 1.47.
4 Hourly Chart
A channel has been formed on the 4 Hourly. As the pro GBP scenario is largely predicted, the upside move should be relatively muted and be easily capped below the Channel Top, not breaking the bearish momentum in any meaningful way. On the other hand, any further easing measures from BOE would almost certainly push price below the Channel Bottom, accelerating downside pressure, in line with the Bearish Breakout interpretation on the Daily Chart.
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GBP/USD – Pound Continues to Drop as 1.60 Under Strong Pressure
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