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GBP/USD through 1.4400 on BoE

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 14, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Edinburgh) - The sterling keeps the composure vs. the greenback following the BoE event today, with GBP/USD hovering over the 1.4400 neighbourhood so far.

    GBP/USD no major moves post-BoE

    In line with market consensus, the Bank of England has left unchanged its refi rate at 0.5% and the asset purchase facility at £375 billion. The BoE minutes showed another 8-1 vote favouring a steady monetary stance (Ian McCafferty the usual suspect).

    Furthermore, MPC members now see UK inflation staying lower for longer mainly on weaker crude oil prices, although these are seen supporting further spending in the future. The MPC has revised lower its growth forecasts, now expecting the economy to expand 0.5% in Q4’15 and Q1’16.

    GBP/USD key levels

    The pair is now losing 0.16% at 1.4412 and a breakdown of 1.4352 (low Jan.12) would expose 1.4346 (low Jun.8 2010) and then 1.4229 (2010 low May 20). On the flip side, the next resistance aligns at 1.4583 (downtrend from 1.5232) ahead of 1.4714 (20-day sma) and finally 1.4947 (high Dec.24).
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