- Weaker UK retail sales data kept a lid on the early uptick to 1.2500 handle.
- BoE’s MPC voted unanimously to leave interest rates unchanged at 0.75%.
The GBP/USD pair traded with a mild negative bias through the mid-European session on Thursday and had a rather muted reaction to the latest BoE monetary policy update.
The pair did gain some positive traction during the early European session, despite weaker UK monthly retail sales data, but once again failed to make it through the said hurdle and started retreating from the key 1.2500 psychological mark.
BoE maintains staus-quo
The moved little and held on to its weaker tone just above mid-1.2400s after the BoE’s MPC, at the meeting this Thursday, voted unanimously to leave interest rates and asset purchase target unchanged at 0.75% and £435 billion, respectively.
Meanwhile, investors already seemed to have digested Wednesday’s hawkish rate cut by the Fed and some renewed selling bias surrounding the US Dollar might further collaborate towards limiting any meaningful downfall, at least for the time being.
Hence, it will be prudent to wait for a strong follow-through selling before confirming that the pair’s recent bullish trajectory might have already run out of the steam and positioning for any further near-term corrective slide.
Technical levels to watch
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