BOE Announcement Has GBP/USD Testing Ceiling

 

 

As expected the BOE kept rates unchange and announced no change in QE measures. This has the GBPUSD moving higher in early NY trade.  Overnight the pair corrected off the 2 day move higher and dipped back below the 100 hour MA currently at the 1.5054 level. The move lower corrected 38.2% of the move up over that time period and this was enough to get the pair moving back to the upside (see chart below). 

On the 5 minute chart below, the pirce is back above the 100 and 200 bar MA at the 1.5067 and 1.5079 levels respectively. This is positive for the pair as the day starts. However, a move above the back side trendline is needed to propel the pair higher.   1.5129 was the high from yesterday.

 

 

On the upside a break of the 1.5114 area has the high from yesterday to contend with at the 1.5129 level. Above that the 1.5176 level is the 38.2% of the move down from the February 17th level.   Above that level is the 200 hour MA at the 1.5227.  If the 1.5114 area can not be broken an move back down toward the 100 and 200 bar MA on the 5 minute chart would be the downside target.

 

 

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