20 Nov 2013
GBP/USD loses momentum after BoE
FXstreet.com (Edinburgh) - The sterling is coming down from session lows near 1.6150, dragging the GBP/USD back to the 1.6125/20 region after the release of the BoE minutes.
GBP/USD weaker on unchanged minutes
In line with the broad consensus, the MPC members unanimously voted to keep unchanged both the refi rate and the purchases of Gllts at 0.5% and £375 billion, respectively. The BoE minutes also showed that uncertainty still persists regarding the extension of the current recovery and that the pace of productivity could increase faster than the demand. Regarding consumer prices, the BoE stressed that expectations remain firmly anchored, adding that a strong pound would keep downward pressure on prices. More important, the BoE emphasized that the unemployment rate at the 7% threshold does not necessarily represent a trigger for hiking rates.
GBP/USD relevant levels
At the moment the pair is down 0.04% at 1.6118 with the initial support at 1.6104 (low Nov.20) followed by 1.6065 (MA30d) and finally 1.6060 (low Nov.19). On the upside, a break above 1.6143 (high Nov.20) would open the door to 1.6163 (76.4% of 1.6258-1.5854) and then 1.6207 (high Oct.28).
GBP/USD weaker on unchanged minutes
In line with the broad consensus, the MPC members unanimously voted to keep unchanged both the refi rate and the purchases of Gllts at 0.5% and £375 billion, respectively. The BoE minutes also showed that uncertainty still persists regarding the extension of the current recovery and that the pace of productivity could increase faster than the demand. Regarding consumer prices, the BoE stressed that expectations remain firmly anchored, adding that a strong pound would keep downward pressure on prices. More important, the BoE emphasized that the unemployment rate at the 7% threshold does not necessarily represent a trigger for hiking rates.
GBP/USD relevant levels
At the moment the pair is down 0.04% at 1.6118 with the initial support at 1.6104 (low Nov.20) followed by 1.6065 (MA30d) and finally 1.6060 (low Nov.19). On the upside, a break above 1.6143 (high Nov.20) would open the door to 1.6163 (76.4% of 1.6258-1.5854) and then 1.6207 (high Oct.28).