FxWirePro: GBP/USD outlook weaker on renewed downside pressure
GBP/USD declined on Thursday as sterling was weighed down after the Bank of England's inflation report showed interest rates were unlikely to rise in the near future. Bank of England policymakers concluded a two-day meet…
GBP/USD declined on Thursday as sterling was weighed down after the Bank of England's inflation report showed interest rates were unlikely to rise in the near future.
Bank of England policymakers concluded a two-day meeting and projected a very different outlook for the UK. BOE kept rates unchanged and indicated in a quarterly inflation report that interest rates were unlikely to rise until late 2019.
The BoE's Monetary Policy Committee (MPC) voted 7-1 in favour of keeping interest rates on hold at their record-low 0.25 percent this month, quashing some bets that a second official would also support a rise.
The pair fell to hit one-week low $1.2853 after the Bank's release, before recovering to trade at $1.2863 in the early US session.
The ongoing weakness is set to continue for this pair as the resistance level at 1.2897 is likely to act as strong barrier to the bulls and bring a further decline towards lower levels.
To the upside, immediate resistance can be seen at 1.2869, a break above this level would expose to cable to next resistance level at 1.2897.
To the downside immediate support can be seen at 1.2842, a break below will open the door towards next level at 1.2808.
