GBP/USD Forecast: Sterling Provides Great Selling Opportunity At $1.3340

When ECB decided to prolong its asset purchasing program by additional 9 months while cutting the volume of monthly purchases in half to €30 billion last week, the EUR/USD slumped 250 pips in just two days. Of course, the slump on Euro was not only the factor of the ECB decision but also a matter of much better than expected US GDP, that rose 3.0% with political uncertainty in Spain with Catalonia unilaterally declaring independence last Friday adding a pinch of salt.

Since the Bank of England is signalling that it will take back the post-Brexit rate cut this Thursday, the first rate hike in a decade in the UK should be perceived as a "dovish hike“, similar to dovish taper from the ECB last week.