Thursday, May 10, 2018

GBP/USD Steady Before BoE Decision

The GBP/USD exchange rate is now hovering around the 1.3560 mark as volatility seems to be slowing down in anticipation of the latest BoE Inflation Report and Interest Rate Decision. Bank of England is expected to hold the rate unchanged which could deliver another blow to the Sterling and send it below the short term support of 1.3500 - 1.3460.

Leaving the rate unchanged at 0.50% will mean that people have no stimuli to hold their worth into the currency and would be better off looking for value somewhere else.

The decision will be made public in less that 5 hours and will most likely hint the long term direction of the UK currency.

Chart: GBP/USD H4


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