GBP/USD Plunges 100 Pips Following BOE Meeting Results! - Kakiforex.com - Financial Market Media No. 1 in the World GBP/USD Plunges 100 Pips Following BOE Meeting Results! GBP/USD Plunges 100 Pips Following BOE Meeting Results!
InstaForex

June 25, 2021

GBP/USD Plunges 100 Pips Following BOE Meeting Results!

 The Pound Sterling became the major currency with the most declining performance this week after the results of the monetary policy meeting of England’s central bank saw the Pound depreciate sharply.


The Bank of England (BOE) has kept interest rates unchanged at 0.10% and delivered a dovish -toned statement signaling to continue to maintain loose policy until it reaches the central bank’s inflation target.




Let's take a look at the price movement on the GBP/USD currency pair chart.


Starting from the beginning of the week, the price managed to show a bullish pattern again after a significant decline in the previous miggu.


The rise continued until Wednesday reaching the resistance level of 1.4000 before falling again in Thursday’s trading ahead of the results of the BOE meeting.


Following the decision of the meeting, the plummeting Pound reacted to the dovish tone of the central bank seeing a daily decline of around 100 pips recorded.



However, the 1.39000 level is seen as a price support level that managed to prevent a lower fall before the price slightly increased and moved slowly continuing into the Asian session on Friday morning around 1.39200.


After a drop below the Moving Average 50 (MA50) barrier level in the 1 -hour time frame of the price movement, analysts again saw a tendency signal for the price to resume the downtrend.


The initial decline in the price is seen to test the support zone of 1.38000 which is the zone that managed to curb the price fall on last week's decline.


If the price manages to fall past that zone, the next price target is expected to head to the level around 1.37000 which is the price support zone in March and April trading.