• 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.
  
  Resistance Levels
  
  R1: 1.2869 (50% Retracement Level)
  
  R2: 1.2897 (61.8% Retracement Level)
  
  R3: 1.2948 (Daily high)
  
  Support Levels
  
  S1: 1.2842 (38.2% Retracement Levels)
  
  S2: 1.2808 (23.6% Retracement Levels)
  
  S3: 1.2771 (April 25th lows)