Review-
The Bank of England has voted to keep its main interest rate at a record-low 0.50per cent. The central bank also said in a statement it had decided to maintain the level of cash stimulus pumping around the economy at GBP 375 billion ($A684.5bn). Analysts said a backdrop of low inflation in Britain the economy of which is enjoying a solid recovery, would have convinced policymakers to sit tight and avoid rushing to hike the interest rate, which has remained at 0.50 per cent for more than five years.
Technical view-
The pair is trading at 1.6922 in Asia's trading session. For the last 2 days, the pair has made lower lows and lower highs. Currently, the pair is trying to take support between 1.6910-1.6890. On the downside, breaking below 1.6890, it will fall to 1.6870, 1.6850, 1.6826, and 1.6783. For the intraday perspective, the pair shifted to the pull back mode. Traders can buy at cmp or even at a dip to enjoy the pullback ride. On the upside, the pair can rise up to 1.6934, 1.6950, and 1.6970 levels.
On the positional basis,the sell on rise is still active for this pair. On the downside, the pair has found initial support at 1.6866; below this 1.6823 is the trend changer level. The RSIinthe daily chart has given an early breakdown indication. So, sell on the rise is the best strategy for the next couple of days.
Recommendations- cmp 1.6920
Buy for intraday target 1.6934, 1.6950 and 1.6970 levels.
