British Pound Slides from Dovish BoE Comments – GBP/USD, GBP/JPY, EUR/GBP

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NFP Reactions: EUR/USD, GBP/USD, NZD/USD
NFP Reactions: EUR/USD, GBP/USD, NZD/USD

The Bank of England released its quarterly inflation report and followed with a QA session.

After hinting at a possible 2014 rate hike, Carney and the gang gave some relatively dovish comments such as
“The path of interest rate is likely to be limited”.
“There is more spare capacity than we previously thought.”
“There is room for additional spare capacity to be used up before we move rates.”
“We want to see jobs income and spending really growing. We have yet to see incomes really growing.”

The GBP fell after the inflation report. The GBP/USD fell back below 1.70. GBP/JPY continues to consolidate with focus toward a common support at 172.75. EUR/GBP is trying to form a price bottom in the middle of a persistent bearish trend. If price can push above 0.8025, we can expect some further bullish correction this week.

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Fan Yang has been a professional forex trader and analyst since 2007. He specializes in technical analysis and has a Chartered Market Technician designation since 2011. He was the chief technical strategist at CMSFX He was also the founder and chief currency strategist at FXTimes Over the years, Fan has not only been a trader and analyst but also an educator. As a proponent of both technical and fundamental analysis in trading, Fan advocates simplicity and discipline as key factors in making trading decisions when faced with so many "clues" and "signals". Currently Fan Yang is the chief currency analyst and webinar instructor at forexminute.com.