Pound pairs’ trade idea and key levels ahead of BOE (majors)

Today's Bank of England's (BOE) monetary policy decision along with releases of quarterly inflation report and minutes are likely to spark volatility and might set the tone for pound based pairs.

EUR/GBP -

• Fundamental remains favorable to pound, as Bank of England (BOE) is on its way to time the rate hike and European Central Bank (ECB) is expected to continue its massive easing at least till September, 2016.

• Euro is currently trading at 0.698 against pound and it is likely to fall further towards 0.65 area. Initial target is around 0.674. Key resistance lies at 0.72.

GBP/JPY -

• Fundamental again remains favorable to pound, as Bank of England (BOE) is all set for a rate hike tomorrow and Bank of Japan (BOJ) is pursuing massive monetary easing, which is likely to continue at same pace of ¥ 80 trillion at least this year.

• Pound is currently trading at 194.9 against Yen and set to rise further at least towards 199.5 area as initial target and 212 as next. However second target might demand large stop loss from current price, since Yen performs very well in risk-on environment. For initial target, key resistance are around 192.9 and 190.9.

GBP/USD -

• Fundamentally speaking, pound has gained some ground over hawkish comments from Bank of England (BOE) governor Mark Carney last month, however market is very much focused on rate hike from FED this year. Pound and BOE might come into lime light once the FED hike is done with.

• Pound might continue its range trade against Dollar. Bands on the upper side stands at 1.57 and 1.60 and lower band remains at 1.535 and 1.515 areas.

GBP/CHF -

• In rate hike curve pound is quite ahead of Swiss National Bank (SNB), which is still fighting deflationary pressure. This makes Pound with an upper hand against Franc.

• Pound is currently trading at 1.532 against Franc and all set to challenge key resistance around 1.555 area. A break of key resistance might lead the pair around 1.65 area.