Forex: GBP/USD finds support at 1.5895 after BoE leaves policy unchanged

By IBTimes Staff Reporter | January 07 2010 7:30 AM

FXstreet.com (Barcelona) - The GBP/USD is trading above 1.5900 level after finding support at 1.5895 in the minutes following the BoE monetary policy release today's morning. Cable fell around 165 pips throughout the Asian and European session to find support at 1.5895. Currently the pair is trading around 1.5910/20, 0.65% below today's opening price action at 1.6017.

Sponsorship Link

The Boe will keep its benchmark record at 0.5%, the lowest level on record for the 11th month in a row, while the budget for its quantitative easing program will remain at GBP 200 billion. As usual, the Bank has not given any further detail of the meeting, whose minutes are due to be released on January 20.

TJ Marta, chief technical analyst at Marta on the Markets, comments: Cable (1.5905) is down overnight, continuing to falter after trading to a new high since mid-December Monday. It is testing the bottom of the 1.60-1.68 range that has held for most of the time since June. Technical support lies at 1.5833 (Dec30 low) and then 1.5708 (Oct low). Resistance lies at 1.6241 (Jan4 high), 1.6411 (Dec 16 high), 1.6878 (Nov16 high) and 1.7043 (Aug high). The strongest correlates over the past two months for GBP/USD have been the DXY (negative), EUR/USD (positive), the S&P (positive) and crude oil (positive).

.