A binary options take on today's market news
The GBP/USD comes into focus today as the Bank of England (BOE) holds a press conference in tandem with its quarterly outlook on interest rates today at 10:30am GMT. Normally a major market mover, traders pay attention to this event in order to forecast interest rate decisions, and impact on the value of the pound sterling.
GBP/USD: Quick Backdrop
The pound has been losing some ground to the US dollar in recent sessions, dropping from 1.5801 to as low as 1.5709 despite a strong performance in January. At current indications and in light of data on unemployment unchanged at 8.4%, the pair is moving towards its 100-day MA of 1.5679. Short-term support could be found at 1.5641 and then 1.5602.
Meanwhile the FTSE100, a good proxy for the currency, moved past its short term resistance and is trading at new year highs, despite weak US sales data. Recent monetary easing by the British Monetary Policy Committee to make available an additional 50 billion pounds into the UK economy certainly helped. Not surprisingly, the pound rose on the news.
In any event, it should be an interesting day.
GBP/USD Pivot Points (Time Frame: 1 Day)
Name S3 S2 S1 Pivot R1 R2 R3