Marisa

As expected, the Bank of England left its benchmark interest rate unchanged at 0.5% and also announced that it will continue with its “emergency” bond-purchase program as is; with target holdings set at 200 billion pounds. The GBP/USD pair remained above the 1.5400 mark following the announcement and has risen to levels as high as 1.5475 going into the 15:00 GMT fixing hour on Thursday. Today’s high, coupled with yesterday’s high slightly above 1.5530 still keep the GBP/USD pair just below the 38.2% Fib retracement levels of 1.5562 on the 4-hour charts from its August 6th top. If this holds as a level of resistance for the remainder of the week and the 4-hour MACD continues to decline, entry levels along the 1.5520-1.5470 range could be seen as attractive for opening short positions in the pair going into Friday. Profit targets of 110-200 pips, for hopes of collection early in next week’s trading, could be set at the 1.5360-1.5320 range. For those with a broader perspective, if the 1.5320 is reached again either Friday or next week, this would place the GBP/USD near the 38.2% Fib retracement levels from its rise off mid-May bottoms. The daily chart also shows the daily MACD leveling off. There is no particular trade being setup in my mind with this information, just something to keep in mind if you prefer the broader view of the daily rather than hourly charts. As usual, these observations are solely my opinion and do not constitute any form of investment or trading advice.