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GBPUSD : Breakdown After BOE Meeting Minutes

GBP weakened against US Dollar today after the Bank of England minutes showed a growing debate among the policymakers about slack in the economy and the inflation outlook. The members are uncertain about the amount of slack remaining in the economy and hold different outlook about the inflation. The Inflation in U.K. fell from 1.7% in February to 1.6% in March which is the lowest reading since October 2009. British Pound was little moved when data showed that Britain budget deficit shrank in 12 months period to March to its lowest level since financial crisis.

On the 4 hour chart, GBPUSD which was earlier trading within a rising wedge broke the support line of the wedge and fell down. The pair should find support at 1.6773 and move up. However the bullish trend remain intact as the pair is trading far above the 50 day , 100 day and 200 day SMAs.