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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- 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.
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