• GBP/USD slipped lower on Thursday after the Bank of England left interest rates unchanged and announced changes to its bond-selling programme.
• The Bank of England held rates steady on Thursday, but cautioned that prolonged conflict in Iran could force further rate hikes as it expects UK inflation to top 4% early next year.
•The BoE's Monetary Policy Committee voted 6-3 to keep rates at 3.75%, in line with July's vote and matching economists' median forecast in a Reuters poll.
• In a surprise move, the committee also paused government bond sales for six months and began a longer-term overhaul of its balance-sheet reduction strategy..
• The decision comes after a sharp rise in oil prices in recent months, driven by the Middle East conflict, which has fuelled inflation and prompted policymakers globally to reassess monetary policy.
• Immediate resistance is located at 1.3405(Daily high), any close above will push the pair towards 1.3479(38.2%fib)
• Strong support is seen at 1.3331(38.2%fib) and break below could take the pair towards 1.3275(Aug 28th low).
Recommendation: Good to sell around 1.3360 with stop loss of 1.3420 and target price of 1.3300


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