GBP/USD Extends Bullish Sequence, RSI Threatens Trendline Resistance

British Pound Talking Points

GBP/USD remains bid amid indications of an imminent Brexit deal, and the exchange rate may stage a large rebound ahead of the Federal Reserve meeting as it extends the series of higher highs lows from the previous week.

Image of daily change for major currencies

GBP/USD Extends Bullish Sequence, RSI Threatens Trendline Resistance

Image of daily change for gbpusd rate

The limited reaction to the Bank of England (BoE) meeting suggests the Brexit negotiations will continue to sway GBP/USD over the near-term as the central bank warns ‘the economic outlook will depend significantly on the nature of EU withdrawal,’ and it seems as though the central bank is in no rush to implement higher borrowing-costs as ‘the contribution of external cost pressures, which has accounted for above-target inflation since the beginning of 2017, is projected to ease over the forecast period.

Keep in mind, the BoE may continue to deliver two rate-hikes per year as ‘an ongoing tightening of monetary policy over the forecast period would be appropriate to return inflation sustainably to the 2% target,’ and signs of a smooth Brexit transition may fuel

Article source: https://www.dailyfx.com/forex/fundamental/us_dollar_index/daily_dollar/2018/11/05/GBPUSD-Extends-Bullish-Sequence-RSI-Threatens-Trendline-Resistance.html