The supportive monetary policy of Bank of England (BoE) strengthened the the trade of GBP/USD. The Bank is optimistic about the economic growth. Similarly BoE is hopeful about a supportive GDP. Although pandemic disturbed the economic activities on large scale yet the economy is on its way to recover. The improvement of GDP and the vaccination program both are interlinked factors. Both factors are geared up to stir the Forex trade.
Trade of GBP/USD Review:
The announcement of BoE regarding the rates has alleviated the concerns of the traders. Traders are pretty hopeful about the smooth flow of trade of GBP/USD. The traders of this pair were expecting the same scenario and finally it came up to their expectations. As expected there was no change in the bond-buying program. Thus the recent meeting and announcement of BoE were not that much thrilling for them. The trade of GBP/USD is currently forming a spiking up wedge trading pattern.
Announcement of BoE’s Meeting:
However the positive aspect of the meeting is that you do not need to expect negative rate of interest in the near term of trading sessions. The unlikelihood of discouraging negative interest rate in the coming quarter is an indeed a good news for traders. Bank has confirmed that it is likely to take at least six months to adapt to negative interest rate. Thus till then you can trade without concern about the rate. It seems that the favorite pair has again gained the trust of the traders. Finally the pair has managed to recover and come out of the bearish pressure.
Levels of Trade:
The resistance point for this pair may be at 1.3720. right now the sellers may view this scenario as an opportunity of entering a beneficial trade. If a break happens above this point may hint the domination of the buyers. With the happening of this scenario, the price of this pair will reach the value of 1.38. If traders exert bearish pressure then the entry point for the sellers would be 1.34.