BOC cut Overnight Rate to 0.50% from 0.75%. That also put Bank Rate to 0.75% from 1.00% and Deposit Rate to 0.25% from 0.5%. The move was not entirely unexpected but, in combination with breaking strong six-month resistance and trading to new highs, it was enough for the pair to jump 120 pips on the release and 180 pips on the day.

The pullback was minimal so far. Post-release pullback was contained by Weekly Resistance 2 (1.2882). After that, the pair made new high for the day (1.2958) and has been holding above 1.29 since. That high is the initial resistance, with more coming in between 1.2980 and 1.3010 (Weekly Resistance 3, 00's, Daily Resistance 1).

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