Overall, GBP/USD is trending downwards. Recently, GBP/USD trended higher, breaking the resistance level of 1.18400.
The Bank of England (BoE) will be announcing their interest rate decision later at 2000 (SGT).
It is expected that the BoE will be holding interest rate unchanged at 0.10%.
This month, the BoE carried out two emergency rate cuts totalling 0.65% and also restarted quantitative easing to aid the U.K. economy to overcome the negative impact caused by the Covid-19 pandemic.
In the previous press conference, BoE Governor Andrew Bailey mentioned that the BoE does not favour further rate cut into the negative territory although they are not ruling the possibility of doing so.
With the recent drastic measures taken up by the BoE, it is likely that they will keep interest rate unchanged but may add on other easing measures such as asset purchase.
GBP/USD’s next support level is at 1.18400 and the next resistance level is at 1.21000.
If the BoE keep interest rate unchanged and GBP strengthens, look for short-term buying opportunities of GBP/USD.
The Bank of England (BoE) will be announcing their interest rate decision later at 2000 (SGT).
It is expected that the BoE will be holding interest rate unchanged at 0.10%.
This month, the BoE carried out two emergency rate cuts totalling 0.65% and also restarted quantitative easing to aid the U.K. economy to overcome the negative impact caused by the Covid-19 pandemic.
In the previous press conference, BoE Governor Andrew Bailey mentioned that the BoE does not favour further rate cut into the negative territory although they are not ruling the possibility of doing so.
With the recent drastic measures taken up by the BoE, it is likely that they will keep interest rate unchanged but may add on other easing measures such as asset purchase.
GBP/USD’s next support level is at 1.18400 and the next resistance level is at 1.21000.
If the BoE keep interest rate unchanged and GBP strengthens, look for short-term buying opportunities of GBP/USD.