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GBP/USD slumps to 1.4550 post-BoE

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 4, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    The sterling met renewed selling pressure following the BoE releases today, with GBP/USD testing the mid-1.4500s in the wake of the announcements.

    GBP/USD surrenders gains after BoE

    Spot has quickly broken below the 1.4600 support after the Bank of England left its monetary stance unchanged at its meeting today following a 9-0 vote from the MPC members.

    The BoE now sees the economy expanding 2.2% during this year, down from November’s 2.5%, while it now expects inflation just above 2% in early 2018. The forecasts are based on a first rate hike around mid-2017.

    GBP/USD levels to consider

    As of writing the pair is down 0.14% at 1.4579 with the next support at .4522 (38.2% Fibo of 1.5240-1.40791.4147) followed by 1.4359 (20-day sma) and then 1.4079 (low Jan.20). On the other hand, a breakout of 1.4743 (55-day sma) would open the door to 1.4796 (61.8% Fibo of 1.5240-1.4079) and finally 1.4948 (high Dec.25).

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