8 May 2014
GBP/USD muted on BoE
FXStreet (Edinburgh) - The sterling remained mostly indifferent after the BoE monetary policy meeting, with the GBP/USD hovering over 1.6970/65.
GBP/USD capped near 1.6980
The pair kept the composure after the central bank commanded by mark Carney left unchanged its monetary stance, with the refi rate at 0.5% and the asset purchase facility at £375 billion, as universally expected. “Recent consensus surveys have suggested that rate hike expectations are creeping forward although analysts are still favouring Q2 2015 for the timing of the first move. We prefer February 2015 as the starting point for the tightening cycle given the data flow shows the recovery is gaining momentum whilst also broadening out”, observed James Knightley, Analyst at ING Bank.
GBP/USD relevant levels
At the moment the pair is up 0.06% at 1.6964 with the immediate resistance at 1.6997 (2014 high May 6) followed by 1.7000 (psychological level) and finally 1.7044 (high Aug.5 2009). On the downside, a break below 1.6900 (psychological level) would expose 1.6883 (10-d MA) ahead of 1.6866 (low May 7).
GBP/USD capped near 1.6980
The pair kept the composure after the central bank commanded by mark Carney left unchanged its monetary stance, with the refi rate at 0.5% and the asset purchase facility at £375 billion, as universally expected. “Recent consensus surveys have suggested that rate hike expectations are creeping forward although analysts are still favouring Q2 2015 for the timing of the first move. We prefer February 2015 as the starting point for the tightening cycle given the data flow shows the recovery is gaining momentum whilst also broadening out”, observed James Knightley, Analyst at ING Bank.
GBP/USD relevant levels
At the moment the pair is up 0.06% at 1.6964 with the immediate resistance at 1.6997 (2014 high May 6) followed by 1.7000 (psychological level) and finally 1.7044 (high Aug.5 2009). On the downside, a break below 1.6900 (psychological level) would expose 1.6883 (10-d MA) ahead of 1.6866 (low May 7).