Traders were keenly eyeing the performance of Bank of England for any change in monetary policy. But finally traders are all relaxed with the announcement of unchanged policy. This news have led the value of GBP/USD to jump a bit. The value is now at 1.3642.it has risen from 1.3569. The supporting interest rate and policy of BoE seem to remain the same in the near term. This the traders of GBP/USD can enjoy this positive move for the time being.
Monetary policy, A Positive move:
The unchanged policy is definitely a positive move of BoE. It has strengthened the pair. This positive move has ruled out the possibility of negative rate of interest in the coming days. Currently the rate is at 0.1%. The possibility of negative rate was horrifying the traders. But now it seems that the positive move of BoE has sort it out. BoE is right now positive about the growth perspective. The lockdown and pandemic severely affected the economy. The current state is hundred times better than that economic disaster so Bank of England is hopeful about the GDP. After all, it has seen and experienced the worst scenario. The rate of inflation is also expected to rise about 2% in the coming months.
The resistance point:
Now the traders are concerned about the previous resistance point of 1.37. All are keeping a close watch on the pair to see if it dominates that resistance point. Frankly this point has prevented the pair from going high for a quite long time. The current trend of GBP/USD is a mixed one. As far as USD is concerned, last month was a month of indecisiveness for the USD traders. But with the first week of February, the tables seem to be turning for USD. The traders of USD are looking forward to the news of the non farm payroll. The current scenario seems to hint a bullish breakout in the coming days. Lets see if the nonfarm payroll prove to be a positive move for this pair just like the unchanged monetary policy of BoE.