“¢ BoE MPC votes 9-0 to leave interest rates/asset purchase facility unchanged.
“¢ Brexit optimism continues to underpin the British Pound and remain supportive.
“¢ Traders now eye the latest US consumer inflation figures for some fresh impetus.
The GBP/USD pair held on to its mildly positive tone and had a rather muted reaction to the BoE monetary policy decision.
In its latest monetary policy meeting, held this Thursday, the BoE MPC voted unanimously (9-0) to leave the key lending rate unchanged at 0.75% and asset purchase facility at £435 billion, with the corporate bond target at £10 billion. The decision was on expected lines and thus, did little to influence the price-action.
With the key UK event risk out of the way, the market focus now shifts to the important US macroeconomic data – the latest consumer inflation figures, which could impact Fed rate hike expectations and eventually produce some meaningful trading opportunities.
Technical levels to watch
The 1.3070-80 region might continue to act as an immediate resistance, above which the pair is likely to surpass the 1.3100 handle and test 1.3125-30 supply zone. On the flip side, weakness below 1.3030 horizontal zone now seems to find support near the key 1.30 psychological mark, which if broken might prompt some long-unwinding trade and drag the pair further towards the 1.2900 handle in the near-term.
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