GBP/USD jumps back closer to session tops, around mid-1.2500s post-BoE


  • The British pound gained some traction in reaction to the BoE policy decision.
  • The BoE leaves rates unchanged and expands QE program by £100 billion.
  • Sliding US bond yields undermined the greenback and remained supportive.

The GBP/USD pair has managed to recover a major part of its early lost ground and moved back closer to session tops, post-BoE.

The pair extended this week's rejection slide from the very important 200-day SMA and witnessed some follow-through selling for the third consecutive session on Thursday. The intraday downfall took along some short-term trading stops near the key 1.2500 psychological mark and dragged the pair to multi-day lows.

The pair, however, attracted some dip-buying near the 1.2475 region and gained some traction after the Bank of England (BoE) announced its policy decision. As was widely expected, the BoE left the benchmark interest rate unchanged at 0.1% and increase the size of its quantitative easing program by £100 billion.

The outcome seemed to have disappointed some analysts, expecting a larger increase in the QE amid concerns about the economic outlook. This, in turn, prompted some short-covering move around the British pound and contributed to the GBP/USD pair's strong intraday bounce of around 70 pips from the daily swing lows.

This coupled with the emergence of some fresh US dollar selling bias, amid a weaker tone surrounding the US Treasury bond yields, might assist the pair to capitalize on its the momentum. Some follow-through buying beyond the daily swing highs, around the 1.2565 region, will set the stage for a move towards reclaiming the 1.2600 mark.

Technical levels to watch

GBP/USD

Overview
Today last price 1.2499
Today Daily Change -0.0057
Today Daily Change % -0.45
Today daily open 1.2556
 
Trends
Daily SMA20 1.249
Daily SMA50 1.2428
Daily SMA100 1.2526
Daily SMA200 1.2693
 
Levels
Previous Daily High 1.2589
Previous Daily Low 1.2511
Previous Weekly High 1.2813
Previous Weekly Low 1.2474
Previous Monthly High 1.2601
Previous Monthly Low 1.2076
Daily Fibonacci 38.2% 1.2541
Daily Fibonacci 61.8% 1.2559
Daily Pivot Point S1 1.2515
Daily Pivot Point S2 1.2474
Daily Pivot Point S3 1.2438
Daily Pivot Point R1 1.2593
Daily Pivot Point R2 1.263
Daily Pivot Point R3 1.2671

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD pressured below 1.21 amid mixed markets mood

EUR/USD is trading below 1.21, consolidating Friday's losses as the market mood is mixed. Upbeat Chinese GDP and US stimulus are cheering markets while Italy's political crisis and the depressing coronavirus picture is weighing on sentiment. 

EUR/USD News

GBP/USD fails to recover despite accelerated UK vaccine campaign

GBP/USD remains below 1.36, shrugging off the expansion of Britain's vaccination campaign. Post-Brexit talks on financial services continue while tension is mounting ahead of US President-elect Biden's inauguration. 

GBP/USD News

Gold struggles to capitalize on intraday bounce, up little around $1930-32

Gold struggled to capitalize on its goodish intraday bounce of nearly $40 and was last seen trading with modest gains, around the $1830-32 region.

Gold news

Forex Today: Dollar holds onto gains, shrugging off upbeat Chinese GDP, vaccine news eyed

Markets are mixed on "Blue Monday" with the dollar clinging to gains related to risk aversion, while upbeat Chinese growth partially offsets the gloom.Tension is mounting ahead of President-elect Biden's inauguration.

Read more

US Dollar Index clinches new 2021 highs near 91.00

The greenback, when measured by the US Dollar Index (DXY), adds to Friday’s gains and moves closer to the key barrier at 91.00 the figure, or new 2021 highs.

US Dollar Index News

Forex MAJORS

Cryptocurrencies

Signatures