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Market View

Cable under selling pressure after BOE's meeting

Thursday, May 11, 2017 7:40 AM GMT

Cable is under selling pressure after BOE’s monetary policy statement. MPC members voted 7 to 1 keeping the interest rate unchanged. They are expecting higher inflation numbers for 2017, up to 2.7% (vs 2.4% prev.) while CPI may increase in Q4 2017.  In addition, they voted to sustain the asset purchase program at GBP 435 billion. Analysts are not expecting any rate hike before Brexit talks conclude in 2019. 

The technical view of the pair on daily seems to be bearish according today’s candle. The price is attempting to stay above 21 EMA, which reflects the medium term market bias. However, by breaking 1.29, the trend reverses to the downside in short term.




We have used the 1234 technique on channels and it looks that the price finds a short-term support. This is what we call “Make or Break” level. Therefore, if price violates this level, then the pair will see lower prices.

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