GBP/USD Jumps to Test 1.4500 on BOE Status-Quo

GBP/USD Jumps to Test 1.4500 on BOE Status-Quo

12 May 2016, 13:27
Roberto Jacobs

GBP/USD Jumps to Test 1.4500 on BOE Status-Quo

The GBP/USD pair accelerated further to the upside and challenged 1.45 handle following the release of BOE status-quo policy decision along with minutes and quarter inflation report (QIR).

GBP/USD spikes nearly 40-pips post-BOEs

The GBP/USD pair spiked nearly 40-pips in a knee-jerk reaction to the BOE’s unchanged monetary policy decision, with the policy makers unanimous on the decision this time. However, the spike was quickly faded somewhat as markets digest the softer inflation outlook and downwardly revised GDP forecasts, taking into account the EU referendum scheduled in June, as reflected by the QIR and minutes. At the time of writing, the cable rises 0.26% and hover around 1.4485 levels.

Focus now remains on the central bank’s press conference, where the BOE Chief Carney will shed more light on the policy decision taken at today’s meeting as also justify the softer outlooks for both inflation and growth in the UK.

GBP/USD Levels to consider

The pair has an immediate resistance at 1.4500 (round number), above which 1.4550 (psychological levels) would be tested. On the flip side, support is seen at 1.4400 (round number) below that at 1.4349/47 (100-DMA/ daily S2).


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