Analysis Market overview

GBPUSD overview 03.02.2021

GBPUSD falls ahead of the Bank of England meeting.

GBPUSD under bearish pressure today ahead of a Bank of England meeting on Thursday at which it is set to publish the findings of a consultation on what negative rates would mean for banks’ operations. Most market participants expect the result of this consultation to be the resumption of the status quo – while some fear the Bank of England might consider implementing the negative interest rates later this year – given the slowdown of the economic recovery in UK and given the additional economic damage from the on-going adaptation of the economy after UK left the EU. The pair is also dragged down by the relative USD bullishness as President Biden is expected to eventually pass a large stimulus bill and America’s vaccination campaign is catching up with Britain’s.

Expect sellers on upward corrections.

Next support to watch – 1.3600

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