Bank of England disappoints as members voted to hold rates and cut growth forecasts.
We saw GBPUSD drop from a high of 1.3268 to a low of 1.3112, which is the area we point out this morning as an area of support. Currently the market is holding at this level.
Chart 1: GBPUSD, Hourly
However, should we see this breakthrough and ultimately breach the 1.31 level, this area will then be used as resistance. This would then negate the current bullish outlook and see the next level of support to be the psychological number of 1.30.
If 1.3116 level holds, then the next daily level still remains as 1.3441, which is currently 300 pips away.