Following sharp rise, the Pound has started to drop and is now traded near resistance level of 1.6113 (4/8 Murray). If this level is broken down, the pair can fall to the level of 1.6052.
The Pound is under pressure from the decision of the Bank of England to leave basic interest rate unchanged although currently the rate is at the very low rate of 0.5%. The second negative reason is the fact that asset repurchase program has been also left unchanged at the level of 375 billion pounds. According to the regulator, British economy still needs support; therefore it does not make sense to change monetary policy of the country. Nevertheless, it is expected that the interest rate will be raised in Q1 2015 in case of the stable economic growth in the country.Publication source