GBP/USD drops to fresh 1-1/2 week lows post-BoE announcement

Two BoE MPC members voted for interest-rate cut and weighed on the GBP.
The downside seems limited as investors eye Carney’s speech for a fresh impetus.

Haresh Menghani FXStreet

The selling pressure around the British Pound re-emerged post-BoE announcement and dragged the GBP/USD pair to fresh 1-1/2 week lows, around the 1.2820 region.

The pair failed to capitalize on its attempted intraday recovery move and met with some fresh supply near 200-hour SMA, around the 1.2880 region. The rejection slide accelerated further after two BoE MPC members – Saunders and Haskel unexpectedly voted for a 25bps rate cut.

Against the backdrop of prolonged Brexit uncertainties and the latest UK political developments, the dovish vote distribution took its toll on the British Pound and turned out to be one of the key factors exerting some fresh downward pressure on the British Pound.

The downside, however, remained cushioned, at least for the time being, as market participants now look forward to the post-meeting press conference, where comments by the BoE Governor Mark Carney might lead to a fresh bout of volatility around the GBP crosses.

Technical levels to watch

GBP/USD

Overview
Today last price	1.2855
Today Daily Change	-0.0001
Today Daily Change %	-0.01
Today daily open	1.2856

Trends
Daily SMA20	1.2836
Daily SMA50	1.253
Daily SMA100	1.2451
Daily SMA200	1.2708

Levels
Previous Daily High	1.2898
Previous Daily Low	1.2843
Previous Weekly High	1.2976
Previous Weekly Low	1.2804
Previous Monthly High	1.3013
Previous Monthly Low	1.2194
Daily Fibonacci 38.2%	1.2864
Daily Fibonacci 61.8%	1.2877
Daily Pivot Point S1	1.2834
Daily Pivot Point S2	1.2811
Daily Pivot Point S3	1.2779
Daily Pivot Point R1	1.2889
Daily Pivot Point R2	1.2921
Daily Pivot Point R3	1.2944

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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