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Forex: GBP/USD plunges over 100 pips on BoE

The GBP/USD has collapsed during European trading Wednesday, as the BoE has caused the pair to fold like origami, dropping over 100 pips in recent minutes off of the 1.5655 mark. At the time of writing the pair is in escape velocity, trading at 1.5548/51.

According to the ICN.com analyst team, “The USD/JPY is now stable above Linear “A slight improvement on hourly studies is insufficient for a stronger recovery of the GBP/USD for now, as the 4h structure remains strictly negative, along with overall bearish picture that describes the latest rally as corrective and preceding fresh weakness.” warns Slobodan Drvenica, an analyst at Windsor Brokers Ltd.

At the time of writing, the cross is recording a massive decline of -0.76% Wednesday and the ICN.com analyst team points to support at 1.5525 (previous supports or 1.5600 and 1.5580 were broken).

BoE sees inflation above 2% until 2016

The quarterly Inflation Report released by the Bank of England on Wednesday suggests that inflation will stay above the 2% target for the next two years and it should fall below this level thereafter. The previous inflation forecast pointed to the third quarter of 2014.
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