Dovish comments from BoE’s Saunders Send GBPUSD Lower
GBPUSD trades 0.24% lower at 1.2285 after BoE Saunders said that there is a possibility of an interest rate cut even if a no-deal Brexit avoided. He also added that interest rates could go either way after Brexit, and the persistent uncertainty weighs on UK economy.
GBPUSD lost over 40 pips on the comments GBPUSD technical outlook is bearish for the short term as the pair trade below the 100 and 200-day moving average. GBPUSD had an impressive rally from 1.1957 low in August to 1.2580 high in September. I mentioned yesterday on my technical analysis article “GBPUSD Eyes the Support at 1.2272” that on the 30 minutes chart the pair has triggered the Head and Shoulders pattern with negative implications that might drive the price down to 1.2272 and that is the case as the pair stopped at 1.2270.
On the downside, first support for GBPUSD stands at 1.2270 today’s low, while more bids will emerge at 1.2263 the 50-day moving average. A convincing break below will open the way for a visit down to 1.2209 the low from September 5th.
On the flipside, immediate resistance now stands at 1.2335 the daily high; more offers will be met at 1.2379 yesterday’s high while the 100-day moving average at 1.2453 is the next obstacle to the upside.