BOE Sounded Dovish, But GBP/USD Succeeded in Rising!


The pound moved positively towards the close of trading this week continuing the strengthening against the US dollar that occurred yesterday.

Yesterday Thursday, investors focused on the results of the central bank of England (BOE) policy meeting which saw interest rates maintained at 5.25% as expected.

However, governor Andrew Bailey's statement sounded dovish when he expressed the central bank's willingness to cut interest rates in the next quarter.

The pound initially plunged after the results of the meeting but managed to recover until the end of the New York session due to the weakening of the US dollar.

The US dollar is under pressure again after the United States (US) unemployment benefit claims data rose to the highest level since August last year.

A change in direction occurred on the chart of the GBP/USD currency pair yesterday after a bearish pattern was produced from the beginning of the week.

During the reaction to the BOE meeting yesterday, the price was pushed to the level of 1.24450 first before rebounding until it broke through 1.25000 which was the price resistance level before.

It also gives a bullish signal when the price rises above the Moving Average 50 (MA50) obstacle line on the 1-hour time frame on the GBP/USD chart.

After slowing around 1.25250 in the Asian session this morning, gains continued in the European session to around 1.25400 supported by a strong reading of UK economic growth data for March.

It is possible that a higher increase could happen in the next session with the target towards the concentration level at 1.26000.

But it should be noted that the dovish signal by the BOE risks pressuring the Pound to fall again.

A price drop if it happens will expect the 1.25000 level to be tested before a drop below it will signal a bearish move again.

Next, the level reached yesterday will be targeted before extending the decline to the next target at 1.24000.