ANALYSIS
NQ100 Finds Support from PPIApr 14
Pound Gives Back Intraday Gains With BoE's Temporary Asset Buying Decision
We see that the pound has returned its intraday gains after the Bank of England (BoE) postponed its planned bond sales and announced that it will buy long-term assets from today until October 14 to re-establish market conditions. Although the BoE took this step to prevent the turmoil in the financial markets, it seems to ignore the continued pressure on the pound as an expansionary approach. As a matter of fact, the downward trend in the parity is preserved. Below, 1.0510 is critical. The termination of this level could accelerate the recent bearish movement to 1.0325, indicated by the Fibonacci %161.8 expansion line. Above, 1.0830 – 1.0995 range is the strong resistance zone.
