GBP/USD eases from 1.20 mark post-BoE, downside seems limited


  • GBP/USD stalled its intraday positive move near the key 1.20 psychological mark.
  • The BoE showed readiness to expand asset purchases and exerted some pressure.
  • The downside remains cushioned amid persistent bearish pressure around the USD.

The GBP/USD pair maintained its bid tone, albeit quickly retreated around 50 pips, to mid-1.1900s post-BoE announcement.

The pair stalled its intraday positive move to over one-week tops and witnessed a modest pullback from the key 1.20 psychological mark after the Bank of England announced its latest monetary policy decision and left interest rates unchanged at 0.10%.

The UK central bank, in the accompanying policy statement, indicated that MPC stands ready to expand asset purchase further if needed, which seemed to be the only factor that exerted some downward pressure on the British pound.

The downside, however, remained cushioned amid the prevailing bearish sentiment surrounding the US dollar, which remained on the defensive in the wake of the Fed's unlimited QE and the Fed Chair Jerome Powell's comments on Thursday.

It will now be interesting to see if the pair is able to capitalize on the recent recovery move from 35-year lows or extends its intraday rejection slide as market participants now look forward to the US economic docket for a fresh impetus.

Technical levels to watch

GBP/USD

Overview
Today last price 1.1952
Today Daily Change 0.0072
Today Daily Change % 0.61
Today daily open 1.188
 
Trends
Daily SMA20 1.2404
Daily SMA50 1.2766
Daily SMA100 1.2896
Daily SMA200 1.2673
 
Levels
Previous Daily High 1.1974
Previous Daily Low 1.1639
Previous Weekly High 1.24
Previous Weekly Low 1.1412
Previous Monthly High 1.3204
Previous Monthly Low 1.2726
Daily Fibonacci 38.2% 1.1846
Daily Fibonacci 61.8% 1.1767
Daily Pivot Point S1 1.1688
Daily Pivot Point S2 1.1496
Daily Pivot Point S3 1.1354
Daily Pivot Point R1 1.2022
Daily Pivot Point R2 1.2165
Daily Pivot Point R3 1.2357

 

 

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