BOE moves away from further easing and the quid loves it
Fair play to the BOE. They are acknowledging what they are seeing in the economy and are now in neutral on rates. That's a hawkish signal by way of not being as dovish and that won't stop Carney & Co from highlighting that there's plenty of risks up ahead.
We're just tinkering with resistance ahead of 1.2500, which is where we found sellers nailing the bounce from the Oct blowout.
GBPUSD H4 chart
1.2500 is looking like it will put up a strong fight and the rally will need to break that to continue or the seller will be back in.
In EURGBP, where the dynamics of rate differentials has just changed, We're through support from June and cosying up to the 200 H4 ma.
EURGBP H4 chart
Decent support isn't until down at the 55 dma at 0.8715 and the old June support line at 0.8687.
This is certainly not a game changer for the pound but it has offered buyers some room to have a go as it removes a big bearish influence. Over to the Old Lady.
