MPC minutes and a raft of employment data set for release on Wednesday, March 19. If the releases support the same bias, they could fuel a break out of current range in the GBP/USD. If the releases contradict each other (i.e. one bullish one bearish), it will likely hold the pair within its range. The different scenarios are outlined on a table below.
For bearish/bearish, downside movement should be expected at the support area of 1.6593-1.6600. Should GBP/USD close below this level then look for further movement to 1.6550.
For a bullish/bullish scenario, expect a break at the range mentioned above around 1.6700 and if GBP/USD goe over this level, upside movement will continue towards the target 1.6749-1.6761.
Assuming no other unexpected surprises such as over a 2 percent employment drop or majority of the MPC voting for a rate hike/cut, the response will likely be muted and GBP/USD will hold in its current range.
Daniel Elo, www.economiccalendar.com
