Search ForexCrunch
  • Cable advances to daily highs beyond 1.3200 post-BoE decision.
  • BoE keeps rates unchanged at 0.50%, matching estimates.
  • MPC voted 6-3 to leave status quo unaltered today.

GBP/USD has been lifted to fresh tops beyond 1.3200 the figure after the unexpected hawkish statement from the Bank of England at today’s meeting.

GBP/USD in session tops above 1.3200

Cable quickly leapt around a cent to levels beyond 1.3200 the figure on Thursday after the Bank of England left its monetary status quo unchanged at 0.50% at today’s meeting.

Of note, however, was the MPC vote, with members Saunders, Haldane and McCafferty favouring a rate hike today. The vote was unanimous, instead, to keep the Asset Purchase Facility at £435 billion and £10 billion of corporate assets.

The MPC added that Q1 softness is considered largely temporary, while it will look for further data on the economy to make a decision on rates. MPC will start reducing its stock of QE once rates reach 1.5%.

GBP/USD levels to consider

As of writing, the pair is up 0.27% at 1.3209 facing the next hurdle at 1.3213 (high Jun.21) seconded by 1.3279 (10-day sma) and then 1.3310 (21-day sma). On the flip side, a break below 1.3102 (2018 low Jun.21) would expose 1.3039 (monthly low Nov.3 2017) and finally 1.3027 (monthly low Oct.6 2017).