BoE to keep monetary policy unchanged

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By :  ,  Financial Analyst

BoE to keep monetary policy unchanged

Yesterday, official data showed that U.K. CPI grew 0.2% on year in August, more than flat expected. Later today, the Bank of England is expected to keep its monetary policy unchanged (benchmark rate at 0.10% in sight). Quantitative Easing purchases are expected at 745 billion pounds.

From a technical point of view, on a daily chart, GBP/USD has broken below a rising trend line and stands below its 50-day moving average (in blue). The daily RSI remains within its selling area. Readers may therefore consider the potential for further weakness below horizontal resistance at 1.3255. The nearest support would be set at previous overlap at 1.2750 and a second one would be set at horizontal support at 1.2490 in extension.

Source: TradingView, GAIN Capital

Related tags: Forex Forex GBP

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