This Is What Happened To The GBP/USD Chart After The BOE Meeting - Kakiforex.com - Financial Market Media No. 1 in the World This Is What Happened To The GBP/USD Chart After The BOE Meeting This Is What Happened To The GBP/USD Chart After The BOE Meeting

May 7, 2021

This Is What Happened To The GBP/USD Chart After The BOE Meeting

 Ahead of tonight’s U.S. NFP jobs report, yesterday’s focus event focused on England’s central bank monetary policy meeting saw a brisk movement of the Pound Sterling currency in the market in the New York session.


The Bank of England (BOE) keeps interest rates unchanged and will reduce weekly bond purchases to £ 3.4 billion from £ 4.4 billion.


Nevertheless, the BOE noted that the decision should not be construed as a change in monetary policy. In fact, the BOE stressed that it will not tighten policy in the near term.


The mixed factors make the price movement on the chart of the GBP/USD currency pair fail to give a clear direction and move up and down in a large range.


However, the BOE has also raised its UK economic growth forecast for 2021 to 7.25% from 5.0% last February.


It can be observed that the price on the GBP/USD chart failed to continue rising and was blocked at the resistance level of 1.39200 which has not yet been broken after being tested several times throughout the week.


With the high reached around 1.39400, the price retreated 80 pips to hit the level of 1.38600 and closed the New York session trading between those ranges.



Price movements are expected to slow until the European session this afternoon as investors are wary of the US NFP jobs report tonight.


If the price manages to break the resistance of 1.39200 and gives a bullish trend signal, the target will be refocused at the level of 1.40000 but will need to first overcome last week's high around 1.39700.


If the price plummets, the RBS (resistance become support) zone of 1.38000 will return to the destination of the price.


A decline below that zone will push a lower decline up to the key support zone at 1.37000.