After the event, the Chairman of the Federal Reserve Jerome Powell revealed at the follow up press conference that not one but three rate cuts are possible in 2024. These news caused a drop of the Dollar that continued overnight. The Dollar index reached a slow as 102.90, where it found support.
On the GBP/USD charts the fundamental event resulted in a surge which tested the 1.2800 mark. The 1.2800 level forced the rate to decline and look for support in the 1.2760/1.2770 range.
Mid-day on Thursday, the Bank of England published its official bank rate. Markets expected the central bank to keep rate at 5.25%. Bank of England has done, as expected.
Meanwhile, surveyed economists forecast that the Monetary Policy Committee was set to vote with eight members voting for keeping the rate unchanged and one member voting to cut the interest rate. The voting was also guessed right
GBP reacted to the news with a drop downwards, below various support levels. Economic Calendar
There are no more notable events scheduled for this week.
GBP/USD hourly chart analysis
In the near term future, support could be found in the weekly S1 simple pivot point at 1.2684 and the 1.2680 level. These levels have acted as support during this week.Hourly Chart
GBP/USD daily candle chart analysis
On the daily candle chart, as it was previously expected, the 50 and 100-day simple moving averages are acting as support near 1.2775.Daily chart
Read More: Technical Analysis
Traders go short
Before the US Fed rate event, traders were 51% short, as that proportion of all open position volume on Swiss Foreign Exchange was in bearish positions.
Meanwhile, pending orders in the 100-pip range around the rate were 64% to buy.
After the rate announcements, traders were 54% short and orders were 65% to buy.
Meanwhile, pending orders in the 100-pip range around the rate were 64% to buy.
After the rate announcements, traders were 54% short and orders were 65% to buy.