The Pound remained rather steady against the US Dollar on Thursday morning due to traders awaiting the BOE Monetary Policy Statement released mid-session.
Despite the benchmark rate being left on hold, the market was surprised by the hawkish undertone of the statement, thus causing the Sterling to fall 1.12% within a couple of hours. This strong appreciation resulted in a reversal from the senior channel and a breakout from the 55– and 100-hour SMAs and a historic resistance/support level at 1.3232.
Given that technical indicators are located in the overbought territory and the pair has approached an important resistance cluster set by the 55– and 100-period (4H) and the 200-hour SMAs near 1.33, its general direction is more likely to be to the downside today.
Strong support is likewise ahead at 1.3180.
