GBP/USD tumbles to 1.3100 post-BoE

BoE hiked rates by 25 bp to 0.50% for the first time since 2007.
MPC voted 7-2 favouring higher rates.
Cable plummets to fresh lows near 1.3100.

Pablo Piovano FXStreet

The Sterling is accelerating the daily downside today, forcing GBP/USD to drop to the area of weekly lows in the 1.3100 neighbourhood.

GBP/USD weaker post-BoE

Cable quickly lost momentum after the Bank of England raised its key rate by 25 bp to 0.50% for the first time in a decade, matching the broad consensus.

In addition, the central bank left the asset purchase facility unchanged at £435 billion and the purchases of corporate bonds at £10 billion.

The MPC voted 7-2 (Cunliffe and Ramsen being the dissenters) favouring higher rates and 9-0 in favour of keeping the bond-buying programme intact.

GBP/USD levels to consider

As of writing the pair is losing 0.83% at 1.3136 facing the next support at 1.3100 (low Nov.2) seconded by 1.3081 (100-day sma) and finally 1.3070 (low Oct.27). On the flip side, a breakout of 1.3299 (high Nov.2) would aim for 1.3338 (high Oct.13) and then 1.3499 (2014-2017 resistance line).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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