Updated Technical Analysis For GBP/USD:

GBP/USD had been going with a hard time, the strength of the US dollar and as the UK government made compromises on the Brexit Bill. What’s next? Now the focus is on the BOE’s rate decision and the Mansion House speech by Mark Carney. Forex Singapore

A compromise had reached by the UK government with the pro-Remain rebels in order to secure a victory in Parliament over the amendments suggested by the House of Lords. This could lead to a softer Brexit, but other factors complicated the picture. GBP/USD fell sharply. UK inflation disappointed with 2.4% y/y.  When retail sales beat expectations, the jobs report was mixed with unimpressive salaries but a drop in jobless claims.  The Fed raised interest rates and signaled two additional moves in the US, The hawkish hike took time to materialize in markets and the greenback exploded only after American retail sales beat expectations. Here are the key events and GBP/USD Forecast after the Brexit battles, Carney carnage awaited. Daily Forex Signals

• Rightmove HPI: According to Rightmove, House prices increased by 0.8% on Sunday, April, showing some flexibility in a sector that struggled earlier in the year.

• CBI Industrial Order Expectations: On Wednesday, 10:10. Britain’s industry is suffering from hiccups as this measure of orders has shown. A drop of -3 was seen last time and bounce back to positive ground, 1 point, is on the cards this time.

• Public Sector Net Borrowing:  The British government borrowed a total of 6.2 billion pounds, within normal ranges on Thursday, 8:30. A small squeeze in public lending is likely now: 5.1 billion.

• UK rate decision: Thursday, 11:00. The Bank of England left the interest rate changing its intentions after data came out worse than expected unchanged in May. The BOE is expected to leave its policy once again in this meeting which does not include the publication of the Quarterly Inflation Report nor a press conference. At the same time, the Bank also publishes its meeting minutes and this will reveal the voting pattern. Back in May, two members voted to raise rates while seven, including Governor Carney, voted to leave it unchanged. The same pattern is on the cards now. The reaction may be relatively muted as the Governor speaks later in the day.

• Mark Carney talks: The Governor of the BOE will deliver an important speech at Mansion House on Thursday, 20:15. In the past, he used the occasion to signals changes in monetary policy, sometimes not in line with the thoughts of other members. Any twist may be treated with suspicion but could still move the pound. Carney speaks at a time when liquidity is low, so any surprise could have an outsized impact.

• BOE Quarterly Bulletin: The Quarterly Inflation Report on Friday, 11:00 is not as important as the Bank of England’s quarterly report. Nevertheless, an updated view on the economy may impact markets. It will be of interest to see if the BOE remains optimistic about a Spring recovery as we enter the Summer.
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GBP/USD Technical analysis: 

Pound/dollar plunged and closed below 1.33 and made an initial move to the upside, getting close to 1.3470 (mentioned last week).

Technical analysis from top to bottom:

since early in the year 1.3780 was a line of support in March and 1.3710 was the lowest point. 

Below, 1.3615 capped the pair in late 2017. 1.3470 was a swing high in early June.

The round number of 1.34 could provide further support. Further down, 1.33, which supported the pair in December, is still relevant.

1.3250 was a swing low in early June and 1.3205 was the low point in late May. 1.3080 served as support back in November 2017. The ultimate line is 1.3000. Forex Trading Picks

I remain bearish on GBP/USD, while hopes of a softer Brexit support the pound, the BOE is not close to raising rates, especially as trade issues loom. The US Dollar could gain further strength.