The Bank of England, in an emergency move, cut the interest rates by 50 basis points to 0.25% in an attempt to support the coronavirus outbreak impact on the economy. The BOE also announced a new term-funding to support small and medium-sized companies, and measures to help commercial banks increase lending. The BOE maintains the gilts purchase target at 435 billion from 435 billion. It also maintains the Corporate Bond Purchase Target to 10 billion.
On the news, the GBPUSD dropped by almost 100 pips down to 1.2826 but soon managed to rebound and return above the 1.29 mark. On the technical side, the pair after yesterday’s sharp selloff pierced the 100-day moving average, and now the bears are in control.
On the downside, the first support for the pair will be met at 1.2826, the daily low. The next support level stands at 1.2769, the low from March 4. On the other hand, resistance for GBPUSD seen at 1.2946 the daily high. More offers might emerge at 1.2986, the 100-day moving average.