The Bank of England decided to hold bank rates at 0.10% but also discussed the effectiveness of negative rates which has seen the pound fall significantly in the last two hours.
Looking on the 4-hour chart above, we can see there was a pullback into the 78.6 as well as the key level of 1.30000 where price printed a doji and continued to fall 130 pips lower.
On the 1 hour chart above, we can see that price was trading above the ascending trend line and a reversal can be seen just short of the 78.6 where price continued to fall lower, closing below the trend line and hitting the first take profit area. Looking at the highlighted region, we can see that price is currently trading near a pivotal support/resistance area with the retest of the trend line also a potential area for resistance.
The Bank of England is expecting the third quarter GDP to be 7% lower when compared to the fourth quarter GDP of 2019.
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