GBP/USD in post-BOE bearish consolidation above 1.2800


  • Cable bulls lick their wounds in post-BOE aftermath.
  • Carney’s concerns on the economy and forecasts downgrade weigh on the GBP.
  • Trade optimism-led dollar strength to persist ahead of US data.

The recovery attempts in GBP/USD continue to face stiff resistance near 1.2825 region, leaving the spot in a downside consolidation phase above the 1.28 handle, as the dust settles over the dovish Bank of England (BOE) monetary policy decision aftermath.  

BOE’s dovish twist pounds the British pound

The main catalyst behind the Cable downward spiral a day before was the dovish twist seen in the BOE’s monetary policy announcement. The rates hit the lowest levels since September 24th at 1.2793 after the BOE MPC maintained the interest rates, however, two MPC members voted for a rate cut.

The cautious remarks from the BOE Governor Carney also exacerbated the pain in the pound. “Governor Carney, in his later speech, flagged the risks of a global economic downturn and warned that a no-deal Brexit would likely result in job losses and business closures”, FXStreet’s Chief Analyst, Valeria Bednarik, noted.

Meanwhile, the US-China trade deal hopes backed risk-on market profile sparked a massive rally in the Treasury yields, which in turn drove the US dollar broadly higher. Therefore, the Cable also was pressured by the rise in generalized demand for the greenback.

The focus will remain on the trade-related developments and USD dynamics amid a data-empty UK docket while the UK political headlines take a back seat, with rising dovish BOE expectations. Also, of note remains the UK Preliminary Michigan Consumer Sentiment data, due at 1500 GMT, for fresh dollar trades.

GBP/USD Technical levels to consider

GBP/USD

Overview
Today last price 1.2815
Today Daily Change 0.0001
Today Daily Change % 0.01
Today daily open 1.2815
 
Trends
Daily SMA20 1.2855
Daily SMA50 1.2543
Daily SMA100 1.2452
Daily SMA200 1.2707
 
Levels
Previous Daily High 1.2878
Previous Daily Low 1.2794
Previous Weekly High 1.2976
Previous Weekly Low 1.2804
Previous Monthly High 1.3013
Previous Monthly Low 1.2194
Daily Fibonacci 38.2% 1.2826
Daily Fibonacci 61.8% 1.2846
Daily Pivot Point S1 1.278
Daily Pivot Point S2 1.2745
Daily Pivot Point S3 1.2696
Daily Pivot Point R1 1.2864
Daily Pivot Point R2 1.2913
Daily Pivot Point R3 1.2948

 

 

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