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August 6, 2021

GBP/USD Shows Rise After BOE Meeting

 The focus of Thursday’s trading yesterday was England’s central bank policy meeting that influenced the movement of the Pound.


Expectations for the Pound to continue to move slumped as the British currency was seen to find support for a slight strengthening. What is the central bank saying?


The Bank of England (BOE) kept interest rates unchanged, as did existing monetary policy. Still, the latest indication by the central bank’s hawkish comments made the Pound trade higher again.


Policymakers expect interest rates to rise to 0.4% in the last quarter of this year in addition to signaling that moderate policy tightening measures may be needed for the next few years.


Although the policy tightening signal remained weak, investors reacted positively to the indicator.




The price on the chart of the GBP/USD currency pair managed to rise again moving above the level of 1.39000 towards this week’s resistance level around 1.39500.



Back moving slowly until the continuation of the Asian session today (Friday), the price is above the support level of the Moving Average 50 (MA50) on the 1 hour time frame of the price movement.


Today's price movement will be driven by the United States (US) NFP jobs report which will be published in the New York session shortly.


If the price jumps higher, the resistance zone at 1.40000 will be targeted after last week’s price increase failed to touch that level.


On the other hand, if the price falls below the level of 1.39000, the decline is seen to return to the level of 1.38000 to test the RBS zone (resistance become support).


The lower decline will lead to the previous focus levels at the price zone of 1.37000 and support of 1.36000.