The Bank of England policymakers said that the short-term outlook for UK growth and inflation has weakened further since the central bank maintains their benchmark interest rate at a record low.
Eight of nine MPC (Monetary Policy Committee) members voted to keep interest rates at 0.5 percent for the time being, keeping the “balance of risks” of the economy. In the minutes of their January meeting, published in London on Thursday, BoE policymakers said they need time to assess the implications of recent market volatility.
The intraday bias for GBP/USD remains bearish. On the hourly charts, the 20 MA and 50 MA keep falling.
As today’s trading strategy, watch for bearish signal confirmation on a pull-back move to within the reference area at 1.4447-1.4507 with your target set at 1.4410-1.4351.
In case a pull-back move does not occur, watch the intraday key support at 1.4350. If the support breaks, GBP may fall deeper to 1.4282-1.4225.
Be careful if the resistance at 1.4507 breaks, because it will turn the intraday bias to bullish and possibly will be followed by a bullish move up 1.4549-1.4603.
Guest post by Andrew Bulan, analyst for www.EconomicCalendar.comGet the 5 most predictable currency pairs