Account

New to ADSS? Open an
account now to get started.

OR

Already have an account?

Add funds to your ADSS account

Account

New to ADSS? Open an
account now to get started.

Add funds to your ADSS account

Trends & Analysis
News

Crude falls for 4th straight day on demand woes

News

Nvidia’s stock surges past $1,000 on strong Q1

News

Will mighty Microsoft build on its 2024 gains?

News

USD gains amid Fed rate cut speculations

News

Is the silver squeeze back?

News

Li Auto’s stock hits a speedbump on Q1 results

Trends & Analysis
News

Crude falls for 4th straight day on demand woes

News

Nvidia’s stock surges past $1,000 on strong Q1

News

Will mighty Microsoft build on its 2024 gains?

News

USD gains amid Fed rate cut speculations

News

Is the silver squeeze back?

News

Li Auto’s stock hits a speedbump on Q1 results

Asset Watch

GBP/USD Price Faces Key Levels After BoE Meeting

 

Thursday, August 03, 2023

GBP/USD price chart, and analysis

• The Bank of England hike rates as expected
• Barish signals at GBPUSD daily price chart

 

The Bank of England implemented a widely expected move by raising interest rates by 25 basis points, bringing the rate to 5.25%. Notably, the central bank had taken an unexpected step in the prior session, opting for a 50 basis points increase. However, the drop in inflation levels as indicated in the July report has granted the Bank of England’s Monetary Policy Committee some room to ease its previously tight monetary stance.

Yet, this does not necessarily imply a halt in the series of interest rate hikes. Market expectations point towards a continuation of rate increases with a 25 basis points raise projected for the upcoming September meeting. Following this, the Bank of England may adopt a similar approach to the Federal Reserve and the European Central Bank in being data dependent through assessing inflation data prior to deciding on any further rate hike, pausing, or even ending the rate hike cycle at the November meeting.

Given the current inflation levels and their deviation from the targeted 2%, the prospect of lowering interest rates at the start of the coming year appears unlikely. Consequently, it is likely to see interest rates to stabilize around 5% throughout 2024.

Interestingly, the immediate impact of the Bank of England’s decision to raise interest rates by 25 basis points did not have a substantial effect on the value of the pound sterling. This muted reaction can be attributed to the fact that the markets had already priced in the interest rate hike prior to the official decision being announced.

GBP/USD Price Daily Chart

 

Chart source ADSS Platform

 

On July 27, the GBP/USD broke below the bulish trendline originated from the 5 of June low at 1.2368 then closed below the 50-day simple moving average indicating that sellers were in charge.

A daily close below 1.2616 could encourage some traders to press the pair even lower towards 1.2383. That said, the support levels located at 1.2550 and the 200-day simple moving average should be kept in focus.

On the other hand, a daily close above 1.2775 signals a possible rally towards 1.3047 . However, the resistance levels residing at 1.2866 and 1.2990 should be watched closely.


Site by Pink Green
© ADSS 2024


Investing in CFDs involves a high degree of risk that you will lose your money due to the use of leverage, particularly in fast moving markets, where a relatively small movement in the price can lead to a proportionately larger movement in the value of your investment. This can result in loses that exceed the funds in your account. You should consider whether you understand how CFDs work and you should seek independent advice if necessary.

ADS Securities LLC (“ADSS”) is authorised and regulated by the Securities and Commodities Authority (“SCA”) in the United Arab Emirates as a trading broker for Over the Counter (“OTC”) Derivatives contracts and foreign exchange spot markets. ADSS is a limited liability company incorporated under United Arab Emirates law. The company is registered with the Department of Economic Development of Abu Dhabi (No. 1190047) and has its principal place of business at 8th Floor, CI Tower, Corniche Road, P.O. Box 93894, Abu Dhabi, United Arab Emirates.

The information presented is not directed at residents of any particular country outside the United Arab Emirates and is not intended for distribution to, or use by, any person in any country where the distribution or use is contrary to local law or regulation.

ADSS is an execution only service provider and does not provide advice. ADSS may publish general market commentary from time to time. Where it does, the material published does not constitute advice, or a solicitation, or a recommendation to a transaction in any financial instrument. ADSS accepts no responsibility for any use of the content presented and any consequences of that use. No representation or warranty is given as to the completeness of this information. Anyone acting on the information provided does so at their own risk.