Friday, November 6, 2020

GBP / USD Jumps 200 Pips After BOE Meeting, What Happened?

 Expectations for the Pound Sterling depreciated seemed to falter as the British currency continued to rise in value after a meeting of England's central bank policy at the start of the European session yesterday.

The Bank of England (BOE) still maintains the interest rate at 0.10% despite high expectations for the central bank to implement a negative interest rate.

In fact, the BOE has increased bond purchases by up to £ 150 billion, a value higher than previously expected at £ 100 billion.

Although policy easing has been stepped up, investors see the move to help support the economic recovery affected by the spread of Covid-19 as well as countries facing economic closure measures.

It was observed that the price movement on the GBP / USD pair chart yesterday jumped more than 200 pips after the decision of the BOE policy meeting.

Supported by the depreciation of the US dollar as well, the price has managed to reach the high of 1.31500 in the previous resistance zone.

The price movement that continued in the Asian session this morning started slowly but hovered below the 1.31500 high.

Expectations of a bullish hike will continue further with the depreciation of the US dollar in the market in the face of volatile election sentiment.

The price that managed to pass the high of 1.32000 will continue to rise to the next resistance zone at 1.33000.

On the other hand if the resistance zone fails to break through, the price can make a downtrend with the focus level seen around 1.30600 and even 1.30000.