A surprise that’s not a surprise
Skerdian Meta • 1 min read
Yesterday the forex market and everyone else was widely expecting the Bank of England (BOE) to cut the interest rates which they call the official bank rate. Not only that, but the market expected that all the nine members supported the interest rate cut, unlike in the previous month when all the members voted to keep the interest rates unchanged.
All these expectations were built on the Brexit vote of course and its implications. But guess what, the interest rates didn´t change and eight out of nine BOE members voted for this. That came as some sort of surprise to some but it really wasn´t.
The stochastic indicator is already oversold on the H4 forex chart
The BOE hasn´t had enough time to assess the probable impact of Brexit in the real economy and August is definitely on the table for a rate cut. GBP rose by more than 200 pips in the following hour but came back down. It has been going up overnight and is approaching 1.35, which presents a good opportunity to open a long term sell forex signal in this forex pair.