Grantor euros and The GBPUSD traded above a swing area target between 1.3188 and 1.31945 just ahead of the Bank of England interest rate decision. The high price reached 1.32105 on the move in anticipation of a more hawkish rate decision.
However buyers turned sellers immediately after the rate decision to increase rates by 25 basis points and the central bank signaled some “hesitancy” (read Justin’s post here for all you need to know).
The price tumbled below a lower swing area between 1.3138 and 1.31438 and did not stop until reaching the 200 hour moving average 1.3099 area.
There is a another swing area between 1.3080 and 1.30878 and the rising 100 hour moving average 1.30683 as further downside targets.
Recall from yesterday, the price moved above the 200 hour moving average for the first time since February 23. That helped to lead to the run to the upside and continuation in trading today. However the rate decision seems to of change the minds of traders enforce the price back down toward where it all began.