GBP/USD (current price: 1.3125)
The BOE set the benchmark interest rate at 0.25% on Wednesday, lowering the previous lowest rate of 0.5%. The banks also opted to extend and expand its asset purchase program which will now include investment grade corporate bonds as well, in an attempt to help the struggling economy after the Brexit referendum. The central bank pledged to keep an eye on the further path of the economic indicators, leaving room for even more easing later on this year. The pair fell back to the lower boundary of its trading range after the decision.
Our assessment: Cable is back just above the 1.30 level, trading near an important support zone close the 1.3125 level, as the long-term trend remains bearish.
