GBP/USD Technical Analysis: Will Inflation Force a Hawkish Tilt at the BoE?

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Talking Points:

– The British Pound remains strong after the Morning Star formation that printed two weeks ago. U.K. inflation for the month of August is released tomorrow, and Thursday brings a BoE rate decision.

– With the recent bout of GBP strength we’ve seen a rise in retail sellers. IG Client Sentiment sits at -2.25 as of this writing, and given retail trader’s traditional contrarian nature, this is bullish for the pair.

– Want to see how GBP and USD have held up to our DailyFX Forecasts? Click here for full access.

In our last article, we looked at a potential bullish reversal in GBP/USD after the pair printed a morning star formation on the Daily chart. With that morning star showing up around the Jackson Hole Economic Symposium as the U.S. Dollar extended it’s 2017 down-trend, there were setups on both sides of the pair. But as prices ascended through the 1.2929-level, bullish exposure became more attractive as that previous

Article source: https://www.dailyfx.com/forex/technical/home/analysis/gbp-usd/2017/09/11/gbpusd-technical-analysis-will-inflation-force-hawkish-push-boe-srepstans.html?DFXfeeds=forex:technical:home:analysis:gbp-usd