ANALYSIS
NQ100 Finds Support from PPIApr 14
GBPUSD Failed to Rebound After BoE
The Bank of England (BoE) raised interest rates by 50 basis points to 2.25% at the monetary policy meeting, which brought some reaction to the pound. However, the revision of the GDP growth expectation for the third quarter from %0.4 to %-0.1 in the BoE's text limited the purchases in the pound, bringing recession concerns to the fore. In addition, the dollar, which was strengthened by the US Federal Reserve's (FED) interest rate hike by 75 basis points yesterday, continues to exert pressure on the GBPUSD parity. Technically speaking, the 1.1245 level will be followed closely in the parity, which continues to defend the descending channel movement after the interest rate decision. Losses in transition below this point may deepen to 1.1165 followed by 1.1075, the lowest level in 37 years. Above, 1.1435 – 1.1540 range will remain a strong resistance zone.
