FxWirePro: GBP/USD reverses recent rally, bias back to downside

• GBP/USD declined on Thursday as sterling was weighted down after the Bank of England voted 6-2 in favour of keeping interest rates at their record lows and revised down its growth and inflation forecasts.
   
• BoE Governor Mark Carney and his top officials reiterated their message that they might raise borrowing costs by slightly more than investors expect over the next three years, possibly within a year.
   
• A few weeks ago, investors had begun to price in the chance that the BoE might raise interest rates this month for the first time in a decade. Thursday’s decision sent it 3 days low against the dollar.
   
• The pound fell by more than a cent against the U.S. dollar it was last trading at $1.3130 in the early US session.
   
• Further upside for this pair is expected to be limited as strong resistance level at 1.3265 is set to limit upside and bring decline towards lower levels.
   
• To the upside, immediate resistance can be seen at 1.3156, a break above this level would expose the cable to next resistance level at 1.3199 levels.
   
• To the downside strong support can be seen at 1.3110, a break below at this level will open the door towards next level at 1.3050.
  
  Resistance Levels
  
  R1:  1.3156 (July 27th high)
  
  R2: 1.3199 (50 % Retracement level)
  
  R3: 1.3265 (61.8 % Retracement level)
  
  Support Levels
  
  S1: 1.3110 (38.2 % Retracement level)                   
  
  S2: 1.3050 (23.6 % Retracement level)
  
  S3: 1.3000 (Psychological levels)

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