GBP/USD holds stable above 1.3400 handle post-BOE

Haresh Menghani FXStreet

• BOE keeps interest rates and asset purchase facility unchanged.
• US macro data eyed for some fresh impetus.

The GBP/USD pair quickly recovered a knee-jerk slide to the 1.3400 neighborhood and had a rather muted reaction to the BOE announcement.

The pair held within a familiar trading range, around the 1.3420-30 region, after the Bank of England (BOE), as was widely expected, unanimously voted to leave interest rates unchanged at 0.50% and asset purchase facility at £435 billion.

Meanwhile, the market seems to have largely digested the latest negative Brexit development, wherein the UK lawmakers' vote against PM Theresa May's Brexit plan, with today's upbeat UK monthly retail sales and the post-FOMC subdued US Dollar price action supporting the pair's strong bid tone.

In absence of any subsequent press conference, investors now look forward to the US economic docket, featuring the release of monthly retail sales and initial jobless claims, for some fresh trading impetus.

Technical outlook

Mario Blascak, European Chief Analyst at FXStreet writes, "near-term resistance is at a round big figure of $1.3500 before the cyclical high of $1.3550. With GBP/USD breaking below $1.3360 the currency pair is seen attacking lower levels of $1.3300-$1.3320."

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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