GBP/USD jumps back closer to session tops, around mid-1.2500s post-BoE

The British pound gained some traction in reaction to the BoE policy decision.
The BoE leaves rates unchanged and expands QE program by £100 billion.
Sliding US bond yields undermined the greenback and remained supportive.

Haresh Menghani FXStreet

The GBP/USD pair has managed to recover a major part of its early lost ground and moved back closer to session tops, post-BoE.

The pair extended this week's rejection slide from the very important 200-day SMA and witnessed some follow-through selling for the third consecutive session on Thursday. The intraday downfall took along some short-term trading stops near the key 1.2500 psychological mark and dragged the pair to multi-day lows.

The pair, however, attracted some dip-buying near the 1.2475 region and gained some traction after the Bank of England (BoE) announced its policy decision. As was widely expected, the BoE left the benchmark interest rate unchanged at 0.1% and increase the size of its quantitative easing program by £100 billion.

The outcome seemed to have disappointed some analysts, expecting a larger increase in the QE amid concerns about the economic outlook. This, in turn, prompted some short-covering move around the British pound and contributed to the GBP/USD pair's strong intraday bounce of around 70 pips from the daily swing lows.

This coupled with the emergence of some fresh US dollar selling bias, amid a weaker tone surrounding the US Treasury bond yields, might assist the pair to capitalize on its the momentum. Some follow-through buying beyond the daily swing highs, around the 1.2565 region, will set the stage for a move towards reclaiming the 1.2600 mark.

Technical levels to watch

GBP/USD

Overview
Today last price	1.2499
Today Daily Change	-0.0057
Today Daily Change %	-0.45
Today daily open	1.2556

Trends
Daily SMA20	1.249
Daily SMA50	1.2428
Daily SMA100	1.2526
Daily SMA200	1.2693

Levels
Previous Daily High	1.2589
Previous Daily Low	1.2511
Previous Weekly High	1.2813
Previous Weekly Low	1.2474
Previous Monthly High	1.2601
Previous Monthly Low	1.2076
Daily Fibonacci 38.2%	1.2541
Daily Fibonacci 61.8%	1.2559
Daily Pivot Point S1	1.2515
Daily Pivot Point S2	1.2474
Daily Pivot Point S3	1.2438
Daily Pivot Point R1	1.2593
Daily Pivot Point R2	1.263
Daily Pivot Point R3	1.2671

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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