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6 Mar 2014
GBP/USD weaker on BoE
FXStreet (Edinburgh) - The sterling quickly reversed the spike to the vicinity of 1.6760 post-BoE, taking the GBP/USD now back to the 1.6710/00 area.
GBP/USD keeps the range
The pair is now trading on a soft tone near 1.6710 after the BoE left its monetary policy unchanged, broadly in line with market expectations. In the opinion of James Knightly, Analyst at ING Bank NV, “It is clear that they want to see monetary policy stay as loose as possible for as long as possible to ensure the economic recovery is sustainable. However, the strength of the growth story coupled with the robustness of the labour market means that the BoE are likely fighting a losing battle in convincing financial markets that rate hikes are a distant prospect”.
GBP/USD levels to watch
At the moment the pair is losing 0.01% at 1.6713 and a breach of 1.6682 (10-d MA) would target 1.6656 (low Mar.5) and finally 1.6640 (low Mar.4). On the upside, the immediate resistance lines up at 1.6741 (high Mar.5) followed by 1.6769 (high Feb.28) and then 1.6800 (psychological level).
GBP/USD keeps the range
The pair is now trading on a soft tone near 1.6710 after the BoE left its monetary policy unchanged, broadly in line with market expectations. In the opinion of James Knightly, Analyst at ING Bank NV, “It is clear that they want to see monetary policy stay as loose as possible for as long as possible to ensure the economic recovery is sustainable. However, the strength of the growth story coupled with the robustness of the labour market means that the BoE are likely fighting a losing battle in convincing financial markets that rate hikes are a distant prospect”.
GBP/USD levels to watch
At the moment the pair is losing 0.01% at 1.6713 and a breach of 1.6682 (10-d MA) would target 1.6656 (low Mar.5) and finally 1.6640 (low Mar.4). On the upside, the immediate resistance lines up at 1.6741 (high Mar.5) followed by 1.6769 (high Feb.28) and then 1.6800 (psychological level).