GBPUSD Technical analysis 04.08.2016

GBPUSD

The pair is falling prior to the announcement of the Britain's Central Bank decision on the interest rates and stimulus. The market assumes that the interest rate will be lowered to 0.25% and and the volume of asset purchases will be increased up to 50 bln pounds. If it happens, the pair will fall under a local pressure as a negative turn of events has already been taken into account by the market.

The price is higher than the middle Bollinger band, but lower than SMA5 and SMA14. RSI is dropping. Stoch passed the 50% level and falling. 
 

Trading recommendation: Sell the pair if it is announced that the interest rate is dropped and stimulus expanded once the 1.3270 level is breached, considering the pair's possible fall to 1.3050-55.