GBPUSD Gains as BOE Maintains Bank Rate
Talking Points
Key Highlights:
BOE Interest Rate Decision
Chinese CPI
BOE Interest Rate Decision
Free Reports:
Earlier during the London session, the BOE Interest Rate Decision was announced by the Bank of England. There was no surprise, as the BOE Monetary Policy Committee (MPC) decided not to change the Bank Rate, and kept it at 0.5%. Also, there was no change in the stock of the purchased assets financed by the issuance of central bank reserves, which is GBP 375 billion.
The British Pound buyers saw this as an opportunity to take it higher. The GBPUSD pair spiked higher from the $1.5400 low to trade near $1.5500 where sellers managed to defend the upside.
Guest Post By – Tom Daly, Academy of Financial Trading
GBPUSD Technical Analysis
There is a major bearish trend line as can be seen on the chart, which stalled the upside. Earlier, the pair managed to clear another bearish trend line which paved the way for more upside movement. The same trend line acted as a support later for GBPUSD and helped buyers.
In short, the pair is now stuck in a critical range with resistance around $1.5500-20 and support at $1.5400. A break on the either side might call for a larger move, and observing the technical indicators, it looks like the pair could trade higher. Let’s see if the pair can manage to clear the $1.5500-20 resistance area or not moving ahead.
Chinese CPI
Earlier today, the Chinese Consumer Price Index, which measures of retail price variations within a representative basket of goods and services report, was released by the National Bureau of Statistics of China. The market was not expecting any change in the CPI in April 2015, compared to the last month. However, the report mentioned that there was a decline of 0.2% in the Chinese CPI.
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Post Submitted By – Tom Daly, Academy of Financial Trading
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