The GBP/USD has plunged today after the BOE, the price has decreased more than 220 pips, have reached fresh new lows today and could drop further tomorrow because the currency pair remains under massive selling pressure, right is challenging important support levels, we’ll have to wait till we’ll have a fresh signal. The price has erased the last day’s gain, the drop was somehow expected because the price had reached an important resistance level and have failed to close above this upside obstacle, the perspective remains bearish because the buyers have failed to change he sentiment.
The Cable has decreased sharply as the Bank of England has cut the Official Bank Rate from 0.50% to 0.25%, the rate decrease was forecasted by the specialists, so the GBP/USD drop was somehow expected. The MPC members have voted unanimously for this decision, have voted as expected. The surprise has come from the Asset Purchase Facility, which was increased from 375B to 435B, the Monetary Policy Committee members have voted by a majority of 6 to 3 to increase the stock of the asset purchases.
The GBP/USD has decreased even if the United States economic data continues to come worse, the Jobless Claims have increased further, from 266K jobs to 269K jobs in the previous week, the currency traders have expected to see a decrease to 265K, but unfortunately the economic indicator has reached the highest level of the last 7-weeks, moreover the Factory Orders have decreased again, have fallen by 1.5%, more compared to the 1.2% drop from the previous reading period, however the rate has come better than the -1.8% estimate.