GBP/USD to climb on bullish technical picture and BoE dissenters

Super Thursday for sterling? At least one dissenter is likely on the Bank of England's bond-buying scheme. Michael Saunders is seen as voting for tapering the bank's £895 billion program. If he is joined by Dave Ramsden or any other members, the pound could rise, but otherwise, caution would weigh on sterling, according to FXStreet’s Analyst Yohay Elam. 

See – GBP/USD to surpass 1.40 if BoE hawks win the battle – SocGen

Technicals point higher

“The focus now shifts to the pound and the BoE's triple release of its rate decision, meeting minutes and the quarterly Monetary Policy Report – which makes it a ‘Super Thursday’ decision. Similar to the Fed, the ‘Old Lady’ is set to leave its policy unchanged for now, but to include voices calling for tighter policy.”

“Monetary Policy Committee member Michael Saunders is projected to vote in favor of tapering the BoE's £895 billion bond-buying scheme and remain the sole dissenter. In that case, sterling has room to fall. However, if he is joined by Dave Ramsden or other members, the pound could climb on prospects of action coming sooner than later.”

“Momentum on the four-hour chart has turned positive, a bullish sign. Moreover, pound/dollar avoided falling off the 50 Simple Moving Average and trades above the 100 and 200 SMAs – another positive development.”

“Some resistance is at the daily high of 1.3925, followed by 1.2950, which was Wednesday's peak. Further above, 1.3980 was July's high point.” 

“Support is at the daily low of 1.3870, followed by 1.3845 and 1.3760.”