Low interest in MPC results
Yesterday’s results from the last Monetary Policy Committee meeting barely caused a ripple of excitement in GBP/USD, as once again nine voted to keep rates unchanged and none voted for an increase. In order for there to be any chance of the Bank of England increasing the interest rate before the end of the year, we will need to see some sort of shift in mentality sooner rather than later.
Subsequently GBP/USD has continued to drift at a fairly sedate pace back down to the $1.70 level. At this point it is likely to find support from both the 50-day moving average and the longer-term resistance that had previously been there.
Although in the short-term it might be drifting, the longer-term outlook remains to the upside as interest rates will rise sooner or later.