The biggest pound-related news will come today is on the BOE interest rate decision. This meeting comes at a time when the number of corona virus cases in the UK has been falling. It also comes at a time when economic data from the country has been relatively strong. The house price index, mortgage data, retail sales, inflation, and PMIs have beaten analysts forecasts.

The BOE may stress that its figures are only “scenarios” and not forecasts. Nevertheless, figures looking more like a V – or at least a tight Nike swoosh – could be positive for the pound, while a long recovery path could be detrimental to the currency.

Back in June, the BOE announced it is topping up the bond-buying scheme by £100 billion to a total of £745 billion. Members of the Monetary Policy Committee expressed willingness to continue supporting the government’s efforts to stabilize the economy and help it recover.

It is to be noted that meeting comes a month after the bank decided to increase its quantitative easing program by £200 billion.

 Therefore, the central bank will be under no pressure to hike or lower rates or even make any further decisions. Still, analysts will be waiting for direction from Andrew Bailey, the BOE Governor. Among the key issues they will be waiting for are on negative interest rates and yield curve control.

Brexit talks will restart later this month. In these talks, the UK is trying to secure a trade deal with the EU, its biggest trading partner. The stakes of these talks to nowhere is high because of the divergences between the UK and the EU.

 UK is still negotiating with the US and Japan. The two sides that do more than £39.5 billion worth of trade are close to an agreement. The UK department of international said: “Both sides are committed to an ambitious timeline to secure a deal that will enter into force by the end of 2020 if at all possible.” Also, the country is accelerating its talks with the US.

GBP/USD 4 Hour Chart:

Support: 1.3056 (S1), 1.3000 (S2), 1.2947 (S3).

Resistance: 1.3164 (R1), 1.3217 (R2), 1.3273 (R3).

These catalysts make Sterling is strong against Dollar as of now but Investors remain keen on the BoE Bank rate release for predicting the future direction. We expect a bullish trend for GBP/USD.