GBPUSD Slumps to Daily Low after Bank of England Kept Rates Unchanged

GBPUSD trading 0.20% lower for the fourth consecutive day after Bank of England (BOE) kept rates unchanged at 0.75% as widely expected by markets. The asset purchase program remained at 435 billion. Two members (Saunders and Haskell) voted for cut.

On the data front, the United Kingdom Halifax House Prices (3m/YoY) came in at 0.9% below expectations of 1.4% in October, the monthly reading came in at -0.1%, below forecasts of 0.3% in October.

Earlier this week the UK Services PMI came in at 50, topping forecasts of 49.7 in October and above the previous reading of 49.5. The services sector in UK is the biggest contributor to GDP and the 50 print today indicates that the services sector has turned the momentum to positive and in the upcoming months might break above 50 that will signal expansion for the sector.

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GBPUSD Support and Resistance

GBPUSD outlook is positive despite the recent corection. On the upside, first resistance can be found at 1.2877 the daily high, after that next target to the upside stands at 1.2999 the high from October 22nd, with more offers to come probably at the 1.3050 the high from mid-May 2019.

On the downside, immediate support level for GBPUSD stands at 1.2811 daily low and then at 1.2806 the low from October 29th, before a move down to 1.2704 the 200-day moving average. Bulls need to break above 1.30 in order to gain control; a convincing break above will attract more buyers, while a rejection at that level might signal profit-taking for one more time.

GBPUSD Slumps to Daily Low after Bank of England Kept Rates Unchanged
GBPUSD Slumps to Daily Low after Bank of England Kept Rates Unchanged

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