Global macro overview for 15/07/2016:
The Bank of England disappointed market participants and held interest rates steady at the level of 0.50% yesterday. Moreover, the asset purchase facility was left unchanged at the level of 375 bln pounds as anticipated. The only marginal change occurred in the official bank rates vote. Last month, the votes were 0-0-9, but for this month we can see a small change to 0-1-8, which means that a possible rate cut might happen as soon as at the BoE’s next meeting in August.
Let’s now take a look at the GBP/USD technical picture on the 4H time frame. The key resistance at the level of 1.3562 is still not violated, but the bulls are moving higher in the corrective move towards it. The market is trading above the 55 and 100 moving average, but the bigger time frame trend is still down. The next support is seen at the level of 1.3342.
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