Forex: GBP/USD takes profit to 1.6050 after BoE unchanged policy
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GBP/USD
FXstreet.com (Barcelona) - The GBPUSD is easing after the announcement of an unchanged policy by the BoE. MPC members decided to leave the Bank Rate paid on commercial bank reserves at 0.5% and the asset purchases programme left at £375B, in the first meeting of 2013.
The decision came in as expected. However, next month's decision may be a pickle: "The bigger question for the BoE is what it will do at its Feb meeting; we think that asset purchase will remain unchanged then, but recognize that it could be a close decision, and that a couple of weak datapoints have the potential to change the picture", wrote TD Securities analyst Alvin Pontoh.
The GBPUSD had rallied to 1.6071 high ahead of the event, and profit taking is now being seen on the chart. The market is currently resting at 1.6050. "Yesterday's slide after the test of 1.6082 resistance marked a new low at 1.5991 and I think it is enough to initiate a rise through 1.6075, en route to 1.6205 area", wrote Deltastock.com analyst Stoyan Mihaylov.
The decision came in as expected. However, next month's decision may be a pickle: "The bigger question for the BoE is what it will do at its Feb meeting; we think that asset purchase will remain unchanged then, but recognize that it could be a close decision, and that a couple of weak datapoints have the potential to change the picture", wrote TD Securities analyst Alvin Pontoh.
The GBPUSD had rallied to 1.6071 high ahead of the event, and profit taking is now being seen on the chart. The market is currently resting at 1.6050. "Yesterday's slide after the test of 1.6082 resistance marked a new low at 1.5991 and I think it is enough to initiate a rise through 1.6075, en route to 1.6205 area", wrote Deltastock.com analyst Stoyan Mihaylov.
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