04.08.202209:10 Forex Analysis & Reviews: Hot forecast for GBP/USD on 04/08/2022

Thursday's main event will be the meeting of the Board of the Bank of England, during which the refinancing rate is likely to be raised from 1.25% to 1.75%. This step will definitely support the pound and allow it to noticeably strengthen its positions.

The GBPUSD currency pair fell below 1.2155 at the stage of restoring short positions relative to the recent corrective move. The 1.2300 level serves as resistance, where a change in trading interests has occurred.

The technical instrument RSI H4 crossed the 50 middle line from top to bottom, which indicates the signal of the completion of the corrective move. RSI D1 is still above the middle line, leaving hope for the pound's subsequent growth.

The MA moving lines on the Alligator H4 indicator signal a change in direction from an ascending cycle to a descending one. The sell signal will improve when the moving lines are kept below the level of 1.2155. Alligator D1 indicates an upward cycle, MA moving lines are directed upwards.

On the trading chart of the daily period, there is a corrective move in the structure of the downward trend. There is no signal of a change in the medium-term trend.

Expectations and prospects

Trading forces concentrated within the 1.2155 level is a temporary manifestation in the market. In view of the upcoming results of the BoE meeting, speculative activity is expected, which, as a result, may indicate the main price movement on the market.

From the point of view of technical analysis, the most optimal point for considering long positions is 1.2200. While the subsequent downward cycle is possible after keeping the price below the values of 1.2100/1.2120 on a four-hour period.

A complex indicator analysis has a sell signal in the short-term and intraday periods due to the phased completion of the corrective move. Indicators in the medium term also have a variable signal.