Still below the high for the day
The GBPUSD has reacted to the upside on the news of more BOE stimulus. The price has moved up to a high of 1.1688, which has now taken out the previous high for the day at 1.16779. The 38.2% of the move down from yesterday's high comes in at 1.17048. That is the next upside target. Above that a broken trend line and 50% retracement at 1.1785 area would be eyed.
Typically, a lowering of rates more more stimulus leads to a lower currency, but if the hope by the market is it spurs on more growth, or slows a decline, the currency can rally. Also, overbought or oversold conditions can be a factor. The GBPUSD has been tumbling since peaking on March 9 at 1.31998. The low price yesterday reached 1.1442. That is a you to 13.3% decline from top to bottom. Is it enough? The burden is still on the buyers to get the price above some of the aforementioned levels. Those are the minimum that will give dip buyers some hope.