Nomura look for further GBP gains after BoE left Bank rate unchanged

Ladt week the Bank of England left rates unchanged:

• ForexLive European FX news wrap: BOE hold rates

Nomura says GBP could rise even further now:

• “There appears to be little appetite on the Monetary Policy Committee to rush into rate cuts,”
• rate-cut expectations appear excessive and are likely to be unwound
• this should benefit sterling

GBP should also catch a tailwind from

• improving global risk appetite
• many other central banks being likely to cut rates faster than the BOE

Daily candles:

I stuck in a horizontal line on a ‘resistance becoming support’ basis. I am certain traders out there could do better t/a than me here – comments welcome!

This article was written by Eamonn Sheridan at www.forexlive.com.