BOE Governor Sounds 'Dovish', See What Happens to GBP/USD!


 The central bank of England meeting was the focus of trading on Thursday yesterday when the interest rate decision was announced at 8pm local time.

As expected, the Bank of England (BOE) kept interest rates unchanged at 5.25% before a follow-up statement by Governor Andrew Bailey came into focus.

The tone conveyed was somewhat 'dovish' when Bailey stated that the strict policy should not remain for a long period.

Although worried about the risk of economic stability, the central bank's challenge is seen to be to balance the still high inflation rate.

Following the meeting, the Pound currency traded lower.

Looking at the price movement chart of the GBP/USD currency pair yesterday, the initial increase was seen following the reaction to the FOMC meeting before that.

The surge from the 1.21000 level continued to the target level of 1.22000 yesterday before the BOE meeting became the focus.

The price reached a height of 1.22250 before falling back below the 1.22000 level and resumed trading in the Asian session this morning (Friday), the price remained hovering slowly around that level.

However, investors still see bullish movement for the price above the Moving Average 50 (MA50) support level on the 1-hour time frame on the GBP/USD chart.

If the price manages to push higher at the close of trading this week, the target is to reach up to the resistance zone at 1.23000.

On the other hand, if the price plunges and falls again, a drop below the MA50 support level will be a bearish signal for the price.

Next, the price is likely to go to the 1.21000 level again to test the focus support zone.