Bank of England has cut 0.25 basis point to bring the rate to 0.25 from 0.50 and little addition to QE
today. So now the question is, whether it is enough to plummet the pound below 1.30 line. Judging from the initial price action, it doesn't look like but it is too early though. If 1.30 doesn't blow out today then be ready for the squeeze part two with GBP/USD
showed us how resilient it is by keep on rising higher even after RBA rate cut. Pound can follow that suit with even nastier side, because unlike Australian Dollar
, pound moves will not be contained within just 100 / 150 pips.
We will be watching this price action closely and if GBP/USD
manages to settle above 1.32 / 1.3250 with positive pulse then, 1.35 is not that far !
Besides, as we highlighted earlier about S&P
, that if it can't take out the support near 2120 then direction is still higher. Now you can see how bubbly it is with just few more quids into the system ;) Tough to bet against indices when there is never ending free money around.