marctomarket.com / by Marc Chandler / Aug 3, 2017
Sterling reached a new 11-month high against the dollar earlier today, but the dovish take away from the Bank of England has seen sterling reverse lower. It has now fallen below the previous day’s low, and a close below there (~$1.3190) would confirm the bearish key reversal pattern. Support near the week’s low just below $1.3100 is holding, and if that goes, the $1.30 level can be tested. A break of $1.2930, the low from the second half of July needs to yield signal a more significant correction.
Sterling has been sold across the board, and it is particularly pronounced against the euro. After bumping against GBP0.90 for the past two weeks, the euro shot through and quickly raced toward GBP0.9050.
The Bank of England voted 6-2 to keep rates steady. Haldane, who previously had indicated that it was a close call from him at the last meeting, stuck with the majority. The Bank of England returns to full staff at the September meeting.