FXstreet.com (Barcelona) - The Pound has found support against the Dollar at 1.6620 after falling around 180 pips from 1.6800 level on the back of the BoE inflation report, and pair has begun to recover some losses to trade around 1.6665/75, 0.45% below today's opening price action at 1.6743.
BoE expects a slow recovery in the coming months and no return to pre-crisis growth in a considerable time. Governor King has affirmed that the prospect of absolute disaster has been greatly diminished. Mervin King also comments that policy will hold unchanged considerable time and investors who are assuming the end of the quantitative ease program are wrong.
The ecPulse.com analysis team comments in the fundamental side: The British pound dropped after the inflation report released today, as King expects a slower recovery for the British economy, which enhanced investors to sell the sterling. On the other hand, the dollar dropped to 15 month low against a basket of major currencies on speculations the FED will not raise the interest rate soon.
The Kshitij Consultancy Service Team affirms on the technical view: Cable has fallen once again after surging towards 1.6797. It has recorded a Low of 1.6618 and has stopped us out of all the three Longs. The rise past 1.6750 can be regarded as a spike and if this Resistance which is the upside of the channel on the 1H holds, expect the pair to be ranged between 1.66-68 over the next couple of days. The Cable fell after the better than expected unemployment numbers. The Projected Max High and Low for the day is at 1.6890 and 1.6603 respectively.