The pair is already back retesting support around 1.14 to start this new week after briefly breaking below to its lowest level since 1985 on Friday.
While it did manage to hold above that pandemic-era support on a closing basis, it will be interesting to see how the FOMC Meeting, followed closely by the BOE this week, impacts direction. While the interest rate decision will cause volatility to spike, it could be the forward guidance provided by each central bank that determined whether we see a breakdown below 1.14, or if cable can bounce in the near-term.
All trading carries risk, but it will be worth keeping an eye on the two central bank meetings this week.
While it did manage to hold above that pandemic-era support on a closing basis, it will be interesting to see how the FOMC Meeting, followed closely by the BOE this week, impacts direction. While the interest rate decision will cause volatility to spike, it could be the forward guidance provided by each central bank that determined whether we see a breakdown below 1.14, or if cable can bounce in the near-term.
All trading carries risk, but it will be worth keeping an eye on the two central bank meetings this week.