The cable jumps 40 pips in early Thursday’s Asia session high made at 1.3280 levels. On Wednesday’s session, cable successfully tested the 50Dsma and rebound strongly enough to close above 50&20Dsma levels.
Ahead of the bank of England’s interest rates decision the cable is trading higher and stand still above 20&50Dsma.
Barclays expects the Bank of England’s September 15 meeting on interest rates will not change policy, nine Monetary Policy Committee (MPC) member voting unanimously decided to maintain the current size of QE unchanged at £ 435 billion, and the doves Fu Lige members would vote to cut interest rates, minutes of the meeting will mainly respond governor Carney testimony before the Special Committee on the Ministry of Finance, that the recent development of the MPC easing policy was appropriate, and further easing future open attitude.
Reuters reported, The Bank of England is expected to say on Thursday that it will still probably cut interest rates to a fraction above zero later this year, despite signs it overestimated the initial shock to Britain’s economy from June’s Brexit vote. The Bank will probably also signal that a further cut is likely the next time it meets, in November, as it to tries to help the economy cope with the referendum decision in June to leave the European Union.
The cable has resistance seems at 1.3300, 1.3320 a 23% retracement of the BREXIT fall and 1.3350-1.3370 earlier swing highs.
Alternatively support finds at 1.3220, 1.3160 and 1.3060.