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GBP/USD muted after BoE

FXStreet (Edinburgh) - The pound kept the composure after the BoE interest rate decision, with GBP/USD hovering over the mid-1.5900s.

GBP/USD gains limited by 1.6000

The pair remains in some sort of consolidative pattern today, although a sustainable surpass of the key handle at 1.6000 still remains elusive for GBP-bulls. Spot is navigating session lows in the 1.5950/45 band, ignoring the unchanged stance by the BoE MPC meeting today. The ‘Old Lady’ left the repo rate and the asset purchase facility intact at 0.5% and £375 billion, respectively, broadly in line with market expectations. According to Karen Jones, Head of FICC Technical Analysis at Commerzbank, “Rallies will find initial resistance at 1.6046 (20 day ma) ahead of key resistance at 1.6185. Short term onus remains on the downside, while we trade below 1.6185”.

GBP/USD levels to watch

The pair is now down 0.20% at 1.5943 with the next support at 1.5869 (2014 low Nov.5) ahead of 1.5854 (low Nov.12 2013) and then 1.5776 (low Sep.12 2013). On the flip side, a breakout of 1.6023 (high Nov.5) would open the door to 1.6026 (Tenkan Sen) and finally 1.6029 (10-d MA).

EUR/GBP steady after BoE decision

Pound was barely affected by the Bank of England decision to leave its monetary policy unchanged, as it was widely anticipated.
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