Sterling bulls return despite possible BOE rate cut

Earlier this month, GBPUSD broke above a roughly two week long consolidation just yesterday signalling conservative long positions into the Great Britain Pound once again.

This is rather surprising given a very dovish BOE outlook with an expected rate cut of 25 basis points and a repurchase of £100bn worth of government and corporate bonds over a six month period.

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GBPUSD 1-Hour

Preceding this strong breakout, price has stalled once again forming a price range with a 1.33~ lower bound and 1.335~ upper bound. If price continues oscillating in this range, it sets up a good straddle trading strategy by observing directional breakout.

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