Bank of England Rate Cut has only minor negative impact on the GB Pound

Video Analysis

An extremely dovish outcome from the Bank of England Meeting on Thursday, with a rate cut and additional quantitative easing.

Although technical supports were breached (1.3279, 1.3226, 1.3168, 1.3149), stronger foundations in the 1.3070/57/47 area have held.

This leaves bias in the very near term for a rebound, back maybe towards the upper end of the July-August range.

On an intermediate-term outlook, we see now a range theme into August.

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For Friday:

  • We see a rebound bias for 1.3185/90; break here aims for 1.3250/60 and maybe a key 1.3481 peak.
  • But below 1.3070 opens risk down through 1.3057 and 1.3047 for 1.2970.

Short/ Intermediate-term Range Parameters: We see a range defined by 1.2791 and 1.3534.

Range Breakout Challenge

  • Upside:Above 1.3534 aims higher for 1.3642 and 1.3905.
  • Downside:Below 1.2791 sees risk lower for 1.2565, 1.2000 and 1.1880.

Daily GBPUSD Chart

2 Hour GBPUSD Chart

Editor in chief

Steve Miley has 29 years of financial market experience and as a seasoned expert now has many responsibilities. He is the founder, Director and Primary Analyst at The Market Chartist, the Editor-in...continued

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