GBP/USD Outlook: Pound Rallies above 1.31 Barrier after BoE Kept Rates on Hold

Technical analysis of Forex market

Cable jumped to 1.31 zone after BoE announcement, as the MPC voted 7-2 to keep interest rates unchanged at 0.75% on today’s policy meeting. The central bank supported its today’s decision by pointing at post-election growth in the UK economy which sidelines need for more stimulus at this point, however, subdued BoE’s inflation forecast keep in play hopes for rate cut in the near future. Pound’s positive reaction after BoE resulted in around 80-pips rally and probe through pivotal barriers at 1.3056/66 zone, provided by converged 5/10/20/30DMA’s, with today’s close above to confirm positive signal and expose next key resistance at 1.3189 (daily cloud top). Improving daily techs (momentum moves into positive territory; stochastic and RSI turn north and MA’s moved into positive setup) supports positive scenario.

Res: 1.3108; 1.3138; 1.3174; 1.3189
Sup: 1.3066; 1.3056; 1.3042; 1.3000

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