GBP/USD in buoyant tone before BoE minutes.

Though Cable volatility is low, the general tone is bullish during last few days. Price is climbing slowly towards 14th May peak at 1.6870. Yesterday attack on this level ended up with failure but bulls want to try once again.

Technically we are in crucial point for further Price Action. On one hand we've had corrective move after Head and Shoulders reversal pattern which range has been fulfilled with AB=CD wave pattern. On the other hand market still haven't beaten important S/R level to resume uptrend (1.6870).

It's all about fundamentals today. 

At 8:30 GMT Bank of England will publish its minutes from last meeting. After last Inflation Report and Mark Carney konference we don't expect any revolutionary info but speculators look for disagreement between MPC members over QE exit and rates path in future. If traders will be able to find what they want, Pound may attack 1.7000 once again very soon.

Other important event today is FOMC minutes release. It focuses particularly much attention of markets, because last meeting was joint Monetary Committee and Fed board – typical for important discussion and/or decisions. Investors will be looking for clues about exit strategy – recent NY Fed president, William Dudley mentioned it in his speech on Monday. FOMC minutes are said to be the most important today and may deliver some extra volatility on major pairs including GBP/USD. 

Concluding: The shape of today's daily candle will most likely be key to further price developements on the pair.


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Marcin Nowogórski

Forex trader, analyst and editor. Observer of central banks policies that affect capital flow between currencies. Also working as an FX industry consultant in business to client area. First experience with investments in 2005 on Warsaw Stock Exchange. Professionally associated with Forex since 2011.

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