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O’Hare: Have GBP bulls charged too far ahead of the BOE?
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Steve O’Hare from First 4 Trading is looking to short sell GBPUSD, arguing Sterling bulls may have been too aggressive in their bets on a rate hike from the Bank of England.
On a technical level, he believes that GBPUSD is poised for a move to the downside if the outcome of the BOE meeting is less hawkish than traders expect.
Currently the markets are speculating about whether the US Federal Reserve or the BOE will be first to hike interest rates.
O’Hare says that Sterling's reaction higher in the past 24 hours can be put down to bullish speculation and with solid horizontal resistance and 61.8% fib retracement above, he expects this rally to fail this morning.
He is looking to set shorts at 1.5675 with a stop above 1.5710 and his targets are 1.5600 & 1.5550.