On Thursday, the GBP/USD remained highly volatile, as the GBP was boosted by the announcements made by the Bank of England.
At mid-day the pair broke the resistance of a pivot point at 1.3062 and was set to test the 1.3100 level.
The British Pound depreciated against the US Dollar, following the BOE Monetary Policy Report release on Thursday at 07:00 GMT. The GBP/USD exchange currency rate gained 80 pips or 0.62% after the release. The Pound continued trading at the 1.3060 level against the Greenback after the release.
The Bank of England released the UK Official Bank Rate data, which came out in line with the expectations of 0.10%.
According to the official release: "At its meeting ending on 4 November 2020, the MPC voted unanimously to maintain Bank Rate at 0.1%. The Committee voted unanimously for the Bank of England to maintain the stock of sterling non-financial investment-grade corporate bond purchases, financed by the issuance of central bank reserves, at £20 billion. The Committee voted unanimously for the Bank of England to continue with the existing programme of £100 billion of UK government bond purchases, financed by the issuance of central bank reserves, and also for the Bank of England to increase the target stock of purchased UK government bonds by an additional £150 billion, financed by the issuance of central bank reserves, to take the total stock of government bond purchases to £875 billion."
Economic Calendar
On Thursday, expect the weekly US Unemployment Claims to cause a minor move at 13:30 GMT. Throughout October, the event has caused GBP/USD moves from 9.6 to 22.3.
Later in the day, at 19:00 GMT, the US Federal Reserve will make a Rate Statement. Namely, the bank will react to the US Election and the following market reaction. Previously, the Fed had stated that they intend to stop a market crash, if one starts due to the election results.
On Friday, the US are publishing their monthly employment statistics. Among them will be the Average Earnings, Unemployment Rate and official Non-Farm Employment Change. In general, the Average Earnings and Employment Change reveal, how much USD is used for employment.
The currency exchange rate has moved from 18.5 to 43.0 pips on the announcement since June.
Click on the link below to find out more about the data releases of this and other currency exchange rates.
GBP/USD short-term review
The Bank of England caused a larger buying spree of the GBP/USD, which reached above the weekly pivot point at 1.3064. This event left the rate without any technical resistance as high as the 1.3170 level.However, it can be expected that the rate could find resistance in the round exchange rate levels at 1.3100 and 1.3150. The rate could reverse or trade sideways at these levels.
Hourly Chart
On the daily candle chart, the rate had the support of the 100-day simple moving average at the 1.2890 level. This level provided the rate with support since the second part of September.
In the meantime, note that the 55-day simple moving average failed to provide resistance at the 1.3000 mark.
Daily chart
Since Wednesday, 51% of trader open position volume on the Swiss Foreign Exchange was in long positions.
Meanwhile, in the 100-pip range around the rate the pending orders were 75% to sell the GBP/USD pair.
On Wednesday, 81% of orders were to sell.