GBP/CAD – Huge Volatility After BoE Decision
GBP/CAD – huge volatility after BoE decision
Today huge volatility occurred at currency pairs with GBP. It was caused by BoE decision on interest rates. That decision was consistent with forecasts which mean interest rates stayed at the same level. There were a hesitance on the market and just after decision GBP/CAD sharply fell to the 1.9890 level and as quickly rebounded. That level was three months support. BoE statement was unequivocal from one side rates hike is possible and from the other lowered the forecast for inflation.
Currently there are two important levels: 1.9890 (support) and 2.0350 (resistance). Break below indicated support will lead price to 1.9730 and next 1.9480. However break above resistance 2.0350 will be a good signal for the bulls and lead price to 2.0540 and next 2.0930.
GBP/CAD 4 Hour Chart
Note: This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision.