GBP/USD off 2-1/2 year lows, still in the red post-BoE

• The British Pound gets a minor lift in absence of any dovish signals by the BoE.
• Persistent fears of a no-deal Brexit should keep a lid on any meaningful bounce.

The GBP/USD pair held on to its weaker tone post-BoE, albeit has managed to recover around 15-20 pips from an early dip to sub-1.2100 level.  

The pair added to its recent losses and remained under some selling pressure through the mid-European session on Thursday – marking its fifth day of slide in the previous six, amid persistent fears of a no-deal Brexit. This coupled with the post-FOMC US Dollar upsurge to two-year tops further collaborated to the pair’s offered tone and an intraday dip to the lowest since January 2017.

Against the backdrop, the British Pound remained depressed after the Bank of England, at its latest monetary policy meeting held this Thursday, decided to maintain status-quo. Meanwhile, the accompanying Quarterly Inflation Report (QIR) did not include a no-deal Brexit possibility and hence, failed to provide any meaningful impetus.

Hence, the key focus remains on the post-meeting press conference, where comments by the BoE Governor Mark Carney will be closely scrutinized for any dovish shift, which might be enough to trigger a fresh leg of a bearish slide for the major.

Technical levels to watch