GBP/USD eases from 1.20 mark post-BoE, downside seems limited
|- GBP/USD stalled its intraday positive move near the key 1.20 psychological mark.
- The BoE showed readiness to expand asset purchases and exerted some pressure.
- The downside remains cushioned amid persistent bearish pressure around the USD.
The GBP/USD pair maintained its bid tone, albeit quickly retreated around 50 pips, to mid-1.1900s post-BoE announcement.
The pair stalled its intraday positive move to over one-week tops and witnessed a modest pullback from the key 1.20 psychological mark after the Bank of England announced its latest monetary policy decision and left interest rates unchanged at 0.10%.
The UK central bank, in the accompanying policy statement, indicated that MPC stands ready to expand asset purchase further if needed, which seemed to be the only factor that exerted some downward pressure on the British pound.
The downside, however, remained cushioned amid the prevailing bearish sentiment surrounding the US dollar, which remained on the defensive in the wake of the Fed's unlimited QE and the Fed Chair Jerome Powell's comments on Thursday.
It will now be interesting to see if the pair is able to capitalize on the recent recovery move from 35-year lows or extends its intraday rejection slide as market participants now look forward to the US economic docket for a fresh impetus.
Technical levels to watch
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.