GBP / USD extends bounce from 1.3600 zone awaiting BoE

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  • The dollar corrects lower throughout the market pushing GBP / USD.
  • If the announcement of the Bank of England comes with monetary policy decisions.

The GBP / USD is rising on Thursday, having managed to stay above 1.3600. The rebound of the pair extended to 1.3679, where he recently marked a high for the day. Pending the decision of the Bank of England (BoE), the pound is affirmed in the recovery against the dollar.

After the Fed, the BoE’s turn

The data released from the UK was below expectations with the PMI reading for September. At 11:00 GMT, the English central bank will announce its decisions. No changes are expected. The focus will be on the tone of the statement. There will be two new members who vote and how they do so will be interesting for the market.

On Wednesday the Federal Reserve kept rates and the buying program as expected. The novelty is that he gave signs that he could cut the purchasing program at the next meeting. Following Powell’s statement and press conference, the dollar appreciated in the market.

The GBP / USD decline found support at 1.3600 / 05, and from there bounced. This level has become the key short-term support. The break of the same would leave the pound weakened, pointing to more losses. On the upside, the pair faces various resistances, between the current level 1.3700, so if it asserts itself over the latter area, it would improve the short-term technical outlook.

Technical levels

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