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GBPUSD Hits Multi-Years Lows And Rebounds On Monetary Measures

GBPUSD
GBPUSD

GBPUSD hit in the early Asian session the multi-year lowest level at 1.1411 but managed to rebound sharply and reversed all of yesterday’s loses. The Bank of England in a surprising move yesterday cut the interest rates from 0.25% to 0.1%. The BOE also announced the increase of UK government and corporate bonds holdings by £200 billion. The Bank of England announced the suspension of all stress tests for banks in 2020.
The UK government also announced a loan guarantee program for 330 billion, almost 15% of GDP and 20 billion grant and tax cuts. On the data front, the United Kingdom Consumer Inflation Expectations drop from the previous 3.1% to 3%.

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GBPUSD Technical Outlook

GBPUSD is 2.45% higher at 1.1769 in a sharp rebound from morning lows around 1.14. The technical picture for GBPUSD pair is bearish despite today’s bounce, and only a move above 1.20 mark can cancel the recent downtrend. 

On the downside, resistance stands at 1.1878 the daily top. If GBPUSD breaks higher, the next resistance level would be met at 1.2133 the high from March 18th trading session. Next supply zone would be reached at 1.2272 the high from March 17th.  

On the flip side, first support for the pair stands at 1.17 round figure. The next support area would be met at 1.16 and then at the daily low at 1.1411.  

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