GBPUSD:
The Bank of England (BoE) left interest rates unchanged with a vote of 7 to 2, and overall increased market anxiety helped the US dollar maintain high demand across the board.
Earlier, the Bank of England, as expected, left its base rate at 4% with a vote of 7 to 2 and reduced quantitative tightening (QT) from £100 billion to £70 billion. It is worth noting that at its previous meeting, the BoE cut rates despite UK inflation being almost double the bank’s 2% target.
The GBP/USD pair is holding close to 1.3550 after falling more than 0.5% at the previous meeting. However, the pair may continue to fall as the US dollar (USD) remains strong after the Federal Reserve (Fed) made an expected rate cut on Wednesday but did not indicate that it would rush to lower borrowing costs in the coming months.
Trading recommendation: SELL 1.3465, SL 1.3495, TP 1.3415
Origin: FreshForex
