The Bank of England (BOE) has confirmed its decision to maintain the benchmark interest rate unchanged. The central bank is going to introduce the “policy of further intensions”.
The main goal of the policy is to clarify which exactly factors will influence the bank’s monetary policy in the near future. At the same time, the Bank of England is determined to back the current economic growth in the UK. By the way, in Q2 2013, the UK’s GPD increased by 0,7%, which is definitely a positive sign. Still, the tendency needs some support to continue. As for quantitative easing, the bank treats it as an extra weapon in its arsenal.
Forex
The chart below, courtesy of Masterforex-V Academy, reflects the current state of affairs in the market of GBPUSD. The currency pair is rallying since the British Pound is currently strengthening against the US Dollar. The retracement against the long-term uptrend seems to be over at this point.
A further rally (above the 1.5717 high) will probably encounter resistance around 1.5751,1.5755, 1.5816, 1.5862.. The current bullish move will be completed as soon as the price overcomes the bottom of the MF sloping channel and consolidates below 1.5477 (as shown below). In this case, the closest levels of support will be found at 1.5372/59, 1.5316.
