September 24, 2021

GBP/USD Soars Record Biggest Daily Gain Since June!

 England’s central bank monetary policy meeting was the focus of yesterday’s European session which also invited surprises by the Pound’s strengthening.

The Bank of England (BOE) maintained interest rates at 0.10% and also maintained an asset purchase target of £ 895 billion.

Still, investors focused on the BOE’s hawkish statement. Members of the MPC meeting unanimously agreed for the rate to be maintained, but votes for a measure to reduce asset purchases (tapering) have increased.

Policymakers are still wary of labor market uncertainties, but are signaling for policy tightening where rate hikes will take precedence over tapering.

Drawing the market’s attention to the price movement on the GBP/USD currency pair chart yesterday, the price has recorded a daily gain of 140 pips which is the biggest daily gain since June.

Passing the resistance at 1.37000, the price has reached to the high level around 1.37500 in the New York session yesterday and slightly declined at the end of the session.

With the signal of a bullish trend change after the price moves back above the Moving Average 50 (MA50) barrier, expect the next rise towards the 1.38000 level for the price to test the SBR (support become resistance) zone.

If the price decline occurs again, the 1.37000 zone will be retested and has the potential to be an important zone that can support the price to continue rising.

A decline below the 1.37000 zone will push the price back to the 1.36000 support zone which has yet to be broken this week.