The British Pound marked a third consecutive weekly decline against the US Dollar this week with GBPUSD nearly 0.5% to trade at 1.3671 ahead of the close of US trade on Friday. The decline highlights a consolidation range at trend extremes and we’re on breakout watch in the weeks ahead. These are the updated targets and invalidation levels that matter on the GBPUSD weekly chart.
The Bank of England has been particularly passive over the past few years, following the ECB and the Fed. And it lasted until the middle of last week. But, apparently, leaving the EU made such behavior impossible. At its meeting on Thursday, September 23, the bank made decisions that made the market literally recoil, and the GBPUSD pair soar by 140 points, from 1.3608 to 1.3748.
In comparison to the Fed’s ambiguous timetable, the Bank of England’s plan outlined clear milestones, which, as already stated, the market received with enthusiasm. But the GBP/USD pair did not go above 1.3748, because despite the lack of concrete figures now, the Fed’s massive plan to end QE will be implemented, and in a short enough time frame.
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