17.03.201710:24 Forex Analysis & Reviews: Global macro overview for 17/03/2017

Global macro overview for 17/03/2017:

The Bank of England hold the interest rate at 0.25% as anticipated. There was an 8-1 vote in favor of the decision with one of the Monetary Policy Committee members, Kristin Forbes, voted for a rate hike of 0.25%. The consensus expectations called for a 9-0 vote. In a case of a bond-buying program, there was no change as well and the voting was unanimous just as anticipated. In the official statement, the BoE said there were limits to the extent that above-target inflation can be tolerated. The recent inflation reading was better than anticipated and the rate may accelerate above the 2.0% target in the coming months. In conclusion, the BoE remains neutral, but still there is a chance of an interest rate hike in the nearest future and withdrawal of monetary stimulus over the next 3 years.

Let's now take a look at the GBP/USD technical picture on the H4 time frame. Bulls have managed to break above the technical resistance at the level of 1.2345, but so far no continuation of the move has been seen. The next target for bulls would be the 61% Fibo at the level of 1.2394 and then the golden trend line resistance. The next support is seen at the level of 1.2303.