GBP/USD moves back to flat despite talk of negative interest rates from the BoE


  • GBP/USD has moved back to flat after trading as much as -0.84% on Thursday.
  • The price has been very volatile all session with lots of data highlights.

The Bank of England send sterling lower

Monetary policymakers in the UK sent the pound into free fall earlier in the session on Thursday after the bank said they had briefed staff over negative rates. They would not be the first as the ECB, SNB and BoJ have all used the tool in the past with the SNB and BoJ still in negative territory. The BoE kept their stimulus program on hold for now and highlighted the uncertainty the COVID-19 pandemic is bringing on the economy. They did however say that the economy has performed better than expected.

The US data today has not been great as U.S. jobless claims remained elevated pretty high at 860,000. Adding to this, both housing starts and the Philadelphia Fed business index fell. This could be the reason that some of those losses in the pare had been pared. Tomorrow the market will get the latest UK retail sales data and it is expected to fall from 3.6% to 0.07%. This could be slightly harsh are not many more lockdowns have been put in place and many holidays had been cancelled so more people stayed in the UK in August. Although, Job uncertainty could be taking its toll.

GBP/USD 30-minute chart

GBP/USD has now pretty much retaken all of the ground lost after the policy statement release. The price was as low as 1.2864 at one point and now is settling at 1.2919 but importantly remains below the 1.30 resistance. 

Looking closer at the chart, the price bounced nicely off the red support level just above 1.2860 which had been used twice before. After also piercing the trendline, the price then went back on to recover to the current level. On the last 30-minute candle it seems like a bank of sell-orders were waiting at 1.30 because the price shot down at the psychological resistance. Now if the bulls are to have any chance of gaining momentum the high of 1.3007 need to be taken out. On the downside the blue support at 1.2918 looks pretty firm. If the bears break that level then a run on levels lower down could be on the cards. This would mean the downtrend on the 4-hour timeframe could continue over the medium term.

GBP/USD Post BoE Negative Interest Rates

Additional levels

GBP/USD

Overview
Today last price 1.2968
Today Daily Change 0.0000
Today Daily Change % 0.00
Today daily open 1.2968
 
Trends
Daily SMA20 1.312
Daily SMA50 1.2986
Daily SMA100 1.2708
Daily SMA200 1.2733
 
Levels
Previous Daily High 1.3007
Previous Daily Low 1.2875
Previous Weekly High 1.3279
Previous Weekly Low 1.2763
Previous Monthly High 1.3396
Previous Monthly Low 1.2982
Daily Fibonacci 38.2% 1.2957
Daily Fibonacci 61.8% 1.2926
Daily Pivot Point S1 1.2893
Daily Pivot Point S2 1.2818
Daily Pivot Point S3 1.2761
Daily Pivot Point R1 1.3025
Daily Pivot Point R2 1.3082
Daily Pivot Point R3 1.3156

 

 

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 edges above 1.18 amid mixed US data, slim stimulus hopes

EUR/USD is trading above 1.30 after US Durable Goods Orders beat expectations but Consumer Confidence missed estimates. Hopes for a US stimulus deal are slim with a week left until the elections.

EUR/USD News

GBP/USD stabilizes above 1.30 amid Brexit and covid uncertainty

GBP/USD is hovering above the round 1.30 levels as rising UK COVID-19 cases, uncertainty about Brexit, and PM Johnson's political problems weigh on sterling. US data has been mixed.

GBP/USD News

XAU/USD ticks up to $1,910 and turns positive on the day

Gold futures have found support right below the $1,900 area earlier today before inching up to $1,910, turning positive on daily charts. The precious metal lost ground, with the US dollar building up during the European session on Tuesday, to appreciate during the North American session with market sentiment improving moderately.

Gold News

Bitcoin breaks new yearly highs; the road to $15,000 is clear

Bitcoin breaks new yearly highs and hits $13,464. The road to $15,000 is clear as there are no major resistance levels above the current price.

Read more

WTI trims losses and moves near $39.00/bbl ahead of API

Following two consecutive daily pullbacks, prices of the West Texas Intermediate regain some buying interest and reach the $39.00 mark per barrel on turnaround Tuesday.

Oil News

Forex MAJORS

Cryptocurrencies

Signatures