GBP/USD Daily Forecast – 27 January

After initial decline and break below 1.42 handle, Sterling find this area around 1.4170 level to be supportive enough in order to rebound all the way to above 1.4350 thus forming a hammer as a daily candle which is of course a positive. As for tomorrow focus will be on FOMC interest rate decision.

BoE Forbes: UK to Hike Rates When Wages Pick Up

GBP/USD Daily Forecast – 26 January

There were no data releases from the UK yesterday. It's a new year and Bank of England officials have been sharing their views on the outlook for the U.K. and the risks. However, their official communications offer no guidance on what economists say is the top risk facing the U.K.: the forthcoming referendum on its membership in the European Union.The absence of "Brexit" analysis from the BOE is getting conspicuous. Last October, Carney skirted the tense political battle with a speech that addressed the U.K.’s relationship with Europe, but offered no final conclusion on its merits.  Read more...

GBP/USD Daily Forecast – 26 January

After initial incline and break above 1.43 handle, Sterling find this area to be resistive enough in order to pullback all the way to 1.4220 area where it found some amount of support, but formed shooting star as a daily candle, which is of course a negative sign. With no major data releases we expect a bit steadier session tomorrow in which resistive candles around 1.43 handle would offer short-term selling opportunity, while supportive candles around 1.42 level would be short-term buying signal.