The GBP/USD pair has been trading sideways since the 9th of May 2016, with the price ranging between the levels of 1.4395 and 1.4480.
The major initially fell during the course of the day on Wednesday, but found enough support around 1.4395 to bounce back up and form a hammer. Today, the pair initially fell to 1.4408, but subsequently spiked to 1.4500, following BoE’s unanimous decision to leave interest rates unchanged. Nevertheless, the sharp move quickly faded, as investors digest the soft inflation outlook and the downwardly revised growth forecast, in light of the June referendum. At the time of writing, the pair trades at 1.4449.
Focus now has turned to Mike Carney’s press conference on the monetary policy to shed some light on the decision taken and on the softer outlooks.
In the event that the price manages to break above 1.4500, the pair could rise up to 1.4527 and 1.4573 in extension.
Alternatively, in the scenario where the price breaks below 1.4420, the pair could find support at 1.4347 and 1.4340 respectively.
Please note: The content in this daily technical analysis article should not be taken as investment advice. It comprises our personal view.