4 Jul 2013
BoE Interest Rate decision next: impact on GBP/USD
FXstreet.com (Barcelona) - The BoE will hold the first MPC meeting under the command of M.Carney. Although the broader consensus expects no change in both the Gilts buying programme, currently at £375 billion, and the lending benchmark, at 0.5%, market participants remain cautious ahead of any announcements/comments by the new Governor, specially those related with the likeliness of the implementation of forward guidance in the future.
In the meantime, the sterling is extending its correction higher, currently hovering over 1.5230/35 after hitting fresh weekly highs above 1.5300 on Wednesday. In case the downside accelerates, the initial support lies at yesterday’s low at 1.5130 followed by the psychological level at 1.5100. On the opposite side, a break above the 100-day moving average at 1.5287 would expose 1.5346 (high June 27th).
Currency Strategist at FXstreet.com Valeria Bednarik commented “Above 1.5240, next resistance comes at 1.5280, and only steady gains above this last may favor some short term rallies, eyeing then 1.5330 price zone”.
In the meantime, the sterling is extending its correction higher, currently hovering over 1.5230/35 after hitting fresh weekly highs above 1.5300 on Wednesday. In case the downside accelerates, the initial support lies at yesterday’s low at 1.5130 followed by the psychological level at 1.5100. On the opposite side, a break above the 100-day moving average at 1.5287 would expose 1.5346 (high June 27th).
Currency Strategist at FXstreet.com Valeria Bednarik commented “Above 1.5240, next resistance comes at 1.5280, and only steady gains above this last may favor some short term rallies, eyeing then 1.5330 price zone”.