GBP/USD plummets to mid-1.2800s, 2-1/2 week lows post-BoE

   “¢   The BoE MPC had a unanimous vote to maintain status-quo.
   “¢   Economic growth forecasts for 2019/20 revised downward.
   “¢   The BoE sees CPI falling below 2% target in the coming months.

The bearish pressure surrounding the British Pound remained unabated, with the GBP/USD pair falling to 2-1/2 week lows, around mid-1.2800s post-BoE announcement.

As was widely expected, the BoE MPC voted unanimously to leave benchmark interest rates unchanged at 0.75% and asset purchase target at £435 billion. The disappointment, however, came from a downward revision of the central bank’s economic growth forecast for 2019 and 2020  

On growth forecast downgrades, the BoE said that Brexit damage has increased and further added that the headline CPI could temporarily fall below 2% target in coming months, which dented the already weaker sentiment surrounding the Sterling and prompted some aggressive selling.

The downward momentum now seems to have paused, 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 infuse a fresh bout of volatility across the GBP pairs.

Technical levels to watch