The GBPUSD remains choppy on the daily timeframe but bulls linger in the vicinity. Further upside could be on the cards, especially after prices created a potential new impulse wave.

With just over an hour left until the BoE rate decision, here is watch to watch out for on the technical front:

A sense of unease gripped financial markets on Wednesday as concerns over China’s growth outlook and sticky UK inflation data left investors on edge ahead of Jerome Powell’s testimony to Congress.

Asian markets flashed red on Tuesday, following the disappointing stimulus from Chinese banks.

This will be a big week for Sterling as focus falls on the latest UK CPI figures and rate decision from the Bank of England.

Sterling is the best-performing G10 currency year-to-date, gaining roughly 6% against the dollar thanks to fundamental and technical factors.

Global financial markets could see increased volatility over the coming week due to Federal Reserve Chair Jerome Powell’s semi-annual testimony to Congress.

Attention will also fall on key central bank decisions including the Bank of England coupled with Fed speeches and top-tier economic data from major economies:

 Monday, June 19

The EURUSD has turned bullish on the daily timeframe. Prices were initially in a down trend until 31 May when a last lower bottom was recorded at 1.06353. After breaking above significant resistance levels, bulls were back in the driving seat with prices advancing to the upside from there.

• S&P 500 and Nasdaq 100 have seen double-digit gains respectively so far in 2023
   
• AI-mania and hopes for Fed rate cuts in 2024 have boosted US tech stocks
   
• Fed rate decision today could trigger big moves across the share market

Asian markets traded higher on Tuesday, following the positive cues from Wall Street overnight after the S&P 500 rallied to its highest level in more than a year. Market sentiment has been lifted by hopes around the Federal Reserve pausing its tightening cycle with the People’s Bank of China’s decision to lower short-term lending rates stimulating risk appetite.

Don’t be fooled by gold’s current state of calm.

This could be an explosively volatile week for the precious metal due to key economic reports and high-risk events.

This period of market calm could come to an abrupt end next week. A long list of high-risk events is likely to see volatility return with a vengeance and keep investors well-occupied.

A long list of high-risk events ranging from interest-rate decision at the Federal Reserve (Fed), European Central Bank (ECB), Bank of Japan (BoJ) to top-tier data from major economies will be in focus.