GBP/USD Trades Lower Post BOE Rate Decision
- The GBP/USD Trades Lower Post BOE Rate Decision
- Rates are Heled at .5% as Expected
- SSI Remains Positive, Reading at +1.74
(Created using Marketscope 2.0 Charts)
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The GBP/USD is trading lower this morning, after today’s Bank of England Rate decision. Rates were left unchanged as expected at .5%. Technically, prices are currently trading below the S4 Camarilla pivot which is displayed above at a price of 1.4153. If prices remain beneath this value, traders may use a 1X extension of today’s 48 pip range to find preliminary bearish breakout targets at 1.4105. It should be mentioned that price has already reached this target once during this morning’s trading.
Traders should note that even through prices are currently trading beneath the S4 pivot, the GBP/USD is trading higher off of its daily low at 1.4090. If prices continue to reverse higher, traders will first look for the pair to trade back inside of today’s range beginning with the S3 pivot at 1.4177. A move to this value opens up the GBP/USD to test values of resistance, including the R3 pivot at 1.4225.
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SSI (speculative sentiment index) for the GBP/USD is currently reading +1.74. This value has increased significantly from last week’s reading of +1.2. When taken as a contrarian signal, this positive SSI reading points to potential further declines in the pair. In the event of a bullish reversal, traders should look for SSI to decline from its present values, to a more neutral reading.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.