GBPUSD's New Uptrend Bolstered by BOE's Policy Decision
As we had forecasted previously, the GBPUSD has started developing a new uptrend. This happened following a rebound from the 38.2 per cent Fibonacci retracement level at 1.31676. The reversal marked the completion of a major 1-5 impulse wave pattern, as postulated by the Elliott Wave Theory, which substantiates the bullish expectations.
Following BOE's policy decision from earlier today, which increased the interest rate in the UK, the GBPUSD started rising towards the next resistance at 1.34000. The latter was recently crossed by the 200-day MA (in orange), making it a more prominent threshold.
If the bullish sentiment persists, then the new uptrend is likely to head further up north towards the 23.6 per cent Fibonacci at 1.35820. However, it would first have to break the major resistance at 1.35000, whose strength is underscored by the 300-day MA (in purple).
Following BOE's policy decision from earlier today, which increased the interest rate in the UK, the GBPUSD started rising towards the next resistance at 1.34000. The latter was recently crossed by the 200-day MA (in orange), making it a more prominent threshold.
If the bullish sentiment persists, then the new uptrend is likely to head further up north towards the 23.6 per cent Fibonacci at 1.35820. However, it would first have to break the major resistance at 1.35000, whose strength is underscored by the 300-day MA (in purple).
