Pair bounces off support area.
The GBPUSD moved lower in the early North American session and in the process found support near the swing area between 1.32257 and 1.35316 (see post here).
The pair looked at over the edge and did not jump. The price has rebounded helped by the testimony of BOE officials who voted 4-4 on whether the minimum conditions were met on raising rates at their last meeting. The price moved back above the 50% midpoint at 1.37464 and that was enough to turn sellers and buyers from a technical perspective.
What now?
On the topside, the broken 38.2% retracement comes in at 1.37806. The close from yesterday was at 1.37823. Getting back above those levels and then the 200 hour MA at 1.37917 would be disappointing to the sellers from earlier today.
BOEs Bailey, Ramsden and Tenreryo are out saying :
- Bailey: I think minimum conditions for a rate rise have been met, but not sufficient for one
- Ramsden: Necessary but not sufficient condition for the rate rise have been met
- Tenreryo: I do not think guidance conditions for rate rise have been met
- Broadbent: I think minimum conditions for a rate rise have been met, but need to focus on medium-term