🔼 GBPUSD gains ahead BoE decision

There are numerous central bank monetary policy announcements scheduled for today but the one from the Bank of England at 12:00 pm GMT will be the most closely watched ones. Big jump in November's CPI inflation reported yesterday boosted odds for a quicker policy action from the UK central bank. UK has met conditions for a rate hike it has set last month but emergence of a new highly transmissible coronavirus variant Omicron may cause BoE to delay any rate move into next year. Interest rate derivatives are currently pricing in around a 30% chance for rate hike today so there is a scope for a surprise.

British pound is trading mixed compared to major currencies ahead of BoE policy decision - GBP gains against USD, CHF and JPY while dropping against CAD, AUD and NZD. Taking a look at GBPUSD chart, we can see that the pair has been trading in a downward move for over a month already. Declines were recently halted at the 1.32 support zone recent and the pair started to move higher. 100-period EMA at H4 interval is being tested at press time and should we see a break above it, the upward move may extend towards the next resistance zone at 1.3350, marked with the upper limit of the market geometry.

Source: xStation5