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British Pound Analysis Ahead of BoE: GBP/USD, GBP/JPY, GBP/NZD

BRITISH POUND FORECAST, GBP/USD, GBP/JPY, GBP/NZD ANALYSIS – TALKING POINTS

GBP/JPY OUTLOOK

GBP/JPY is on the cusp of breaking below the November 2019 uptrend (white-dotted line) as the pair continues to flirt with a downside breakout. Clearing it with follow-through opens the door to testing a four-month low support level at 138.830 (gold-dotted line). Breaching that lower tier could invite further follow-through and the possibility of undoing all of the upside progress made in mid-October.

GBP/JPY – Daily Chart

Chart showing GBP/JPY

GBP/JPY chart created using TradingView

GBP/NZD TECHNICAL ANALYSIS

GBP/NZD’s retreat from support-turned-resistance at 1.9974 (whited-dotted line) after three shy tests could see the pair pullback to the floor at 1.9757 (gold-dotted line). GBP/NZD may also seek to re-test the December uptrend (red parallel lines) along the way. Clearing both could instill a strong bearish bias and catalyze an aggressive selloff.

GBP/NZD – Daily Chart

Chart showing GBP/NZD

GBP/NZD chart created using TradingView

GBP/NZD TECHNICAL ANALYSIS

GBP/USD appears to be forming a continuation pattern known as a Symmetrical Triangle, with the prior uptrend suggesting an upside breakout may be in the cards. However, fundamentally speaking, the upcoming Bank of England rate decision may catalyze a downside breakout and render the pattern invalid. British Pound traders will also be closely scrutinizing the event for another important reason.

GBP/USD – Daily Chart

Chart showing GBP/USD

GBP/USD chart created using TradingView

BRITISH POUND TRADING RESOURCES

— Written by Dimitri Zabelin, Jr Currency Analyst for DailyFX.com

To contact Dimitri, use the comments section below or @ZabelinDimitrion Twitter