BOE Bailey is added to his comment from earliers saying:
- The message from the BOE is that the situation is finely balanced.
- The rate path is still downwards over time
- There is more uncertainty now about when steps are taken.
- Yield curve will be considered for QT decisions
- Domestic factors are main driver of decision to cut rates
The GBPUSD has retraced some of the gains seen after the decision which saw the price run about the 38.2% retracement of the July trading range at 1.33865. The high price extended to 1.3436 but came up short of the 50% midpoint target at 1.3463. The move lower took the price back toward the 38.2% retracement level with the low price reaching 1.3390 - about 3.5 basis points from that support. Buyers have push the price back above the 1.3400 level and it currently trades at 1.3410.
The backtrack toward the 38.2% retracement and holding above that level keeps the buyers in play. However, over time they would need to get the price back above the 50% retracement level to show they are taking back more control from the July sellers.
For a longer term view from the daily chart perspective, see my earlier post here
