BoE Interest Rate Announcement, A Statement Of Stability ?
July 14, 2016 2:07 pm
At 12pm today, the Bank of England announced an unchanged interest rate of 0.50%, but gave a strong indication that easing measures were just around the corner at the next meeting in August. . GBPUSD pulled back from yesterday’s intra-day high of 1.3336 to a low of 1.31 this morning. After the announcement, GBPUSD soared 233 points to an intra-day high of 1.3475, breaking out the resistance level at 1.334, and testing the next resistance at upside trend line at 1.345. On the four hourly chart, the price section is currently oscillating between the two levels at 1.334 and 1.332, the 23.6% level in terms of the post referendum Fibonacci retracement. RSI indicator figure is near 70, implying a pullback and testing the next support level at 1.332. The next support level is at 8 EMA at 1.324. Resistance at the 100 EMA at 1.339 followed by upside trend line at 1.345, and 1.350, which is the significant level of the historical low in Jan 2009. FTSE 100 index has been in a bullish trend post referendum. Yet the index has rallied from 5,693 points on 24th Jun to the intra-day high of 6,692.0 on 14th July before the Bank of England interest rate decision announcement, a 17.55 % rise, breaking the resistance level at 6,670, suggesting a pullback as correction. Also caution must be taken about the profit-taking pressure when the news becomes reality. On the 4 hourly chart, the price section diverged from the steep uptrend line, entering a range bound since 12th Jul, also ADX indicator showed that the trend is losing its momentum, suggesting a pull back. After today’s interest rate decision was announced earlier, the index plunged from 6,678 points, breaking out the support level at 6,630, and testing the next downside support to an intra-day low of 6,590, which is the 20 EMA support level on the 4 hourly chart. The price section currently holds above the level. The next support level is at 6,560, the previous resistance. Source: FX Pro Market Snapshot
At 12pm today, the Bank of England announced an unchanged interest rate of 0.50%, but gave a strong indication that easing measures were just around the corner at the next meeting in August. . GBPUSD pulled back from yesterday’s intra-day high of 1.3336 to a low of 1.31 this morning. After the announcement, GBPUSD soared 233 points to an intra-day high of 1.3475, breaking out the resistance level at 1.334, and testing the next resistance at upside trend line at 1.345. On the four hourly chart, the price section is currently oscillating between the two levels at 1.334 and 1.332, the 23.6% level in terms of the post referendum Fibonacci retracement. RSI indicator figure is near 70, implying a pullback and testing the next support level at 1.332. The next support level is at 8 EMA at 1.324. Resistance at the 100 EMA at 1.339 followed by upside trend line at 1.345, and 1.350, which is the significant level of the historical low in Jan 2009. FTSE 100 index has been in a bullish trend post referendum. Yet the index has rallied from 5,693 points on 24th Jun to the intra-day high of 6,692.0 on 14th July before the Bank of England interest rate decision announcement, a 17.55 % rise, breaking the resistance level at 6,670, suggesting a pullback as correction. Also caution must be taken about the profit-taking pressure when the news becomes reality. On the 4 hourly chart, the price section diverged from the steep uptrend line, entering a range bound since 12th Jul, also ADX indicator showed that the trend is losing its momentum, suggesting a pull back. After today’s interest rate decision was announced earlier, the index plunged from 6,678 points, breaking out the support level at 6,630, and testing the next downside support to an intra-day low of 6,590, which is the 20 EMA support level on the 4 hourly chart. The price section currently holds above the level. The next support level is at 6,560, the previous resistance.
Source: FX Pro Market Snapshot
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