The Bank of England keeps rates low. Growth is looking healthier in the UK and inflation is still below the target, so it's unlikely the bank will its benchmark interest rate from the current 0.5%. Bank of England policymakers allows the UK's recovery to gather pace. The Committee also voted to maintain the stock of purchased assets financed by the issuance of central bank reserves at £ 375 billion.
Technical view
As we recommended in yesterday's article limited upside and sell on rallies, the same the pair is reacting in today as well. The pair faces strong resistance at 1.6823. The pair is in a sell more for near term or couple days. Overall the pair is set for long trend up side until the US dollar breaks above the 81 levels. In Asia's trading session the pair is trading at 1.6772. Trades below the 1.6786 adds more weakness towards this pair. On the down side the pair has support at 1.6718, once break below this it will correct up to 1.6684 and 1.6664(50SMA). On the up side, the bull's strength will be back only above 1.6823 towards 1.69 and 1.7 levels. We still favor to sell on rally for a couple of days or fresh longs will get a good opportunity on dip.
For positional basis, the pair is trading between 1.6718-1.6823. Breakout either side will give more room for trading towards 1.7 or 1.66 levels. A day close above the 1.6823 level February 17 high the pair will extend its leg towards 1.6910 and in max case 1.70 levels will be possible. But in the down side, if the pair breaks and close below 1.6718 for a day, the bear strength will take the pair towards 1.6 and in least case 1.6554. The level 1.6554 is the minor trend decider level, if holds bulls will regain strengh if not, the bears will take the pair up to 1.6465 levels.
The material has been provided by InstaForex Company - www.instaforex.comFor detail explanation and best discovery on market trends you may visit via Technical analysis of GBP/USD for April 11, 2014 . Thanks for your support on Technical analysis of GBP/USD for April 11, 2014
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