Sterling Benefits from the BOE Rate Cut

On Feb. 5, the Bank of England (BOE) cut the bank rate by 50 basis points to record low 1.00 percent. Pound strengthened against dollar, yen, and also the euro. There was a relatively positive sentiment in financial markets as the U.S. lawmakers became closer to pass Obama's stimulus package.

This case, in my view, is a good example showing why both technical and fundamental data are needed to confirm the trader's decisions and any deviation should be seen as an alarm.