GBPUSD at its Weakest Level Since 8-Week Before BOE Decision

by on August 7, 2014 9:19 am BST

GBPUSD approached its weakest level in eight weeks before Bank of England officials announce their latest policy decisions following a two-day meeting.

U.K. 10-year government bond yields dropped to the lowest in almost a year. The central bank’s Monetary Policy Committee will keep its key interest rate at a record-low 0.5 percent today. Officials have been united in voting to leave policy unchanged since Governor Mark Carney’s first meeting in July 2013. The BOE will update its economic forecasts next week and minutes of this week’s discussions will be released on Aug. 20.

The pound fell 0.1 percent to $1.6841 at 8:44 a.m. London time after touching $1.6814 on Aug. 4, matching the lowest since June 12. Sterling was at 79.41 pence per euro, from 79.40 pence yesterday.

The pound has weakened 0.1 percent in the past month. In the past year, it was the best performer, gaining 10 percent as investors brought forward bets on the timing of the BOE’s first increase in interest rates since 2007.

GBPUSD Pivot levels Pivot Woodie Fibonacci
Resistance 3 1.6944 1.6946 1.6914
Resistance 2 1.6914 1.6915 1.689
Resistance 1 1.6883 1.6885 1.6876
Pivot 1.6852 1.6853 1.6852
Support 1 1.6821 1.6823 1.6828
Support 2 1.679 1.6791 1.6814
Support 3 1.6759 1.6761 1.679