GBP/USD analysis: Is crashed by central bank

Dukascopy Bank Team Dukascopy Bank SA

GBP/USD

On November 4, the Bank of England announced its future monetary policy. In general, the bank decided to keep monetary policy unchanged.

On the announcement, at 12:00 GMT, the GBP/USD started a decline. During the fifteen minutes following the release the rate had declined by 86 base points or 0.63%.

On the technical hourly candle chart, the rate passed this week's low level and the weekly S2 simple pivot point. However, the decline appeared to be stopped by the 1.3550 mark, which caused the rate to retrace back up in the immediate aftermath of the fundamental drop.

If the pair passes the 1.3550 mark's support, it could look for support first in the 1.3500 level. Afterwards, the weekly S3 simple pivot point at 1.3466 might provide support.

Meanwhile, a potential recovery of the pair could find resistance in the weekly S2 simple pivot point at 1.3567, the previous this week's low levels at 1.3605/1.3610 and the weekly S1 simple pivot point at 01.328, which could be strengthened by the 50 and 100-hour simple moving averages.

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Dukascopy Bank Team

Dukascopy Bank SA

Dukascopy Bank stands as an innovative Swiss online banking institution, with its headquarters situated in Geneva, Switzerland.

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