The Bank of England released its ‘Super Thursday’ data earlier, with the Interest Rate left on hold at 0.5% and Asset Purchase Facility maintained at £435B. All votes were unanimous. The Quarterly Inflation Report projected inflation at 2.28% in 12 months time, 2.16% in 2 years and 2.11% in 3 years. GDP forecast for 2018 was raised to 1.8% from 1.6% previously. The BOE minutes suggested earlier and faster rate hikes than previously forecast. This had led to the pound making gains with the GBPUSD up to 1.40000. EURGBP has fallen to a low of 0.87317, breaking the red rising two touch support trend line. The price has since recovered to this trend line at 0.87480. Support for the pair can be found at 0.87162, the low from last week, and 0.86901, the low from the previous week. A further loss of these levels can lead to a drop to 0.86000.
Resistance for the pair comes in at 0.87917 and 0.88084, which was the early January low. The Moving Averages are clustered around 0.88200, above these levels but should move lower to follow price. Major resistance on the chart is located around 0.89000, starting at 0.88595 and extending up to 0.89240.
The commodity has been moving lower since late January and, despite a risk-off period over the last few days, it has fallen to the 1307.00 area. This has forced a test of the Navy-Blue trend line at 1309.00, which was pierced earlier, but the price has moved back above it now. Further support can be found at 1300.00 and 1290.00.
If traders can manage to rally the market then 1320.58 is the first level that needs to be regained. Above and close by is the 200-period 4-hour moving average at 1322.40. The next resistance is found at 1327.50 with the 50 and 100-period 4-Hour MAs at 1332.35, just below the 1333.66 level. The red descending wedge top line is at 1340.00 but, should this area be broken in force, 1344.169 can be tested, followed by 1352.766 and the high at 1365.30.