GBP/USD: Bank of England raises interest rate to 0.75%
Current trend
During the Asian session, the GBP/USD pair is trading ambiguously, consolidating near 1.3150. The pound is expecting new drivers, but at the end of the week, the macroeconomic calendar is relatively empty, so the news from Eastern Europe will remain the main driving force on the market.
Yesterday, the instrument renewed the daily low, dropping to the 1.3100 area after the Bank of England meeting minutes were published. The British regulator expectedly raised the interest rate for the third time since December this year, bringing it to 0.75%. The decision was not unanimous as to the deputy head of the regulator, Jon Cunliffe, advocated maintaining the current levels of the rate, noting a strong imbalance in supply and demand against the backdrop of a sharp increase in commodities after the start of a special military operation of Russian troops in Ukraine. The Bank of England expects domestic and global inflation to continue to rise and accelerate significantly over the next few months, while growth in energy-importing economies, including the United Kingdom, is likely to slow down. If a peace treaty between Russian and Ukrainian representatives is not signed in the coming weeks, sanctions against the Russian economy can be expected to negatively impact the process of restoring supply chains that were disrupted during the COVID-19 epidemic.
The Bank of England downgraded its inflation forecasts, noting that consumer price growth could reach 8% for April, which is one percent higher than previous estimates. Thus, the decision of the British financial authorities to change the interest rate parameter returns the cost of borrowing in the UK to the levels observed before the coronavirus pandemic.
Support and resistance
On the daily chart, Bollinger Bands are steadily declining. The price range is actively narrowing, reflecting the emergence of multidirectional trading dynamics in the short term. The MACD indicator grows, keeping a strong buy signal (the histogram is above the signal line). Stochastic shows similar dynamics. However, it is quickly approaching its highs, which signals that GBP may become overbought in the ultra-short term.
Resistance levels: 1.3200, 1.3250, 1.3300, 1.3350.
Support levels: 1.3100, 1.3050, 1.3000, 1.2960.
During the Asian session, the GBP/USD pair is trading ambiguously, consolidating near 1.3150. The pound is expecting new drivers, but at the end of the week, the macroeconomic calendar is relatively empty, so the news from Eastern Europe will remain the main driving force on the market.
Yesterday, the instrument renewed the daily low, dropping to the 1.3100 area after the Bank of England meeting minutes were published. The British regulator expectedly raised the interest rate for the third time since December this year, bringing it to 0.75%. The decision was not unanimous as to the deputy head of the regulator, Jon Cunliffe, advocated maintaining the current levels of the rate, noting a strong imbalance in supply and demand against the backdrop of a sharp increase in commodities after the start of a special military operation of Russian troops in Ukraine. The Bank of England expects domestic and global inflation to continue to rise and accelerate significantly over the next few months, while growth in energy-importing economies, including the United Kingdom, is likely to slow down. If a peace treaty between Russian and Ukrainian representatives is not signed in the coming weeks, sanctions against the Russian economy can be expected to negatively impact the process of restoring supply chains that were disrupted during the COVID-19 epidemic.
The Bank of England downgraded its inflation forecasts, noting that consumer price growth could reach 8% for April, which is one percent higher than previous estimates. Thus, the decision of the British financial authorities to change the interest rate parameter returns the cost of borrowing in the UK to the levels observed before the coronavirus pandemic.
Support and resistance
On the daily chart, Bollinger Bands are steadily declining. The price range is actively narrowing, reflecting the emergence of multidirectional trading dynamics in the short term. The MACD indicator grows, keeping a strong buy signal (the histogram is above the signal line). Stochastic shows similar dynamics. However, it is quickly approaching its highs, which signals that GBP may become overbought in the ultra-short term.
Resistance levels: 1.3200, 1.3250, 1.3300, 1.3350.
Support levels: 1.3100, 1.3050, 1.3000, 1.2960.
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Wyłączenie odpowiedzialności
Informacje i publikacje przygotowane przez TradingView lub jego użytkowników, prezentowane na tej stronie, nie stanowią rekomendacji ani porad handlowych, inwestycyjnych i finansowych i nie powinny być w ten sposób traktowane ani wykorzystywane. Więcej informacji na ten temat znajdziesz w naszym Regulaminie.