BOE Governor Sounds 'Dovish', See What Happens to GBP/USD!

<p>&nbsp;The central bank of England meeting was the focus of trading on Thursday yesterday when the interest rate decision was announced at 8pm local time.</p><p><br /></p><p>As expected, the Bank of England (BOE) kept interest rates unchanged at 5.25% before a follow-up statement by Governor Andrew Bailey came into focus.</p><p><br /></p><p>The tone conveyed was somewhat 'dovish' when Bailey stated that the strict policy should not remain for a long period.</p><p><br /></p><p>Although worried about the risk of economic stability, the central bank's challenge is seen to be to balance the still high inflation rate.</p><p><br /></p><p>Following the meeting, the Pound currency traded lower.</p><p><br /></p><p>Looking at the price movement chart of the GBP/USD currency pair yesterday, the initial increase was seen following the reaction to the FOMC meeting before that.</p><p><br /></p><p>The surge from the 1.21000 level continued to the target level of 1.22000 yesterday before the BOE meeting became the focus.</p><p><br /></p><p><br /></p><p>The price reached a height of 1.22250 before falling back below the 1.22000 level and resumed trading in the Asian session this morning (Friday), the price remained hovering slowly around that level.</p><p><br /></p><p>However, investors still see bullish movement for the price above the Moving Average 50 (MA50) support level on the 1-hour time frame on the GBP/USD chart.</p><p><br /></p><p>If the price manages to push higher at the close of trading this week, the target is to reach up to the resistance zone at 1.23000.</p><p><br /></p><p>On the other hand, if the price plunges and falls again, a drop below the MA50 support level will be a bearish signal for the price.</p><p><br /></p><p>Next, the price is likely to go to the 1.21000 level again to test the focus support zone.</p>