BoE MPC votes unanimously for a 25 bps rate hike. Governor Carney’s comments weigh on GBP on Thursday. US Dollar Index gains traction and, once again, tests 95 handle. Following the initial bullish reaction to the BoE’s interest rate decision, the GBP/USD made a sharp U-turn during governor Mark Carney’s press conference and lost nearly 100 pips from its session high. Although it looked like the pair was trying to recover its losses as it rose toward mid-1.30s, a strengthening greenback made sure that the pair remained under pressure. As of writing, the pair was down 0.77%, or 100 pips, at 1.3025. Although a rate hike from the BoE was already priced in the markets, the fact that the MPC voted unanimously provided a boost to the sterling. However, governor Carney’s comments made it clear that the Bank would remain on hold amid the uncertainties surrounding Brexit negotiations and weighed on the GBP. In an interview with BBC, Carney said that one rate hike for the next few years could be a “good rule of thumb.” Reflecting the broad-based GBP weakness, the EUR/GBP broke above the 0.89 mark. Commenting on Carney’s remarks, “the MPC has taken a leap of faith to protect its forward guidance and maintain its credibility, but Brexit is a big, big question mark that hovers over the economy. We don’t expect another hike until it becomes clear what kind of Brexit the economy has to endure,” Rabobank analysts noted. On the other hand, today’s upbeat macroeconomic data releases from the U.S. helped the greenback preserve its bullish momentum and put some extra weight on the pair. In the last hour, the DXY broke above the 95 mark and a daily close there could suggest that the index is getting ready to extend higher. On Friday, the only macroeconomic data release from the UK will be the Markit’s Services PMI, which is unlikely to help the pound shake of the bearish pressure. In the second half of the day, investors will be focused on the NFP report. Technical outlook With a decisive break below 1.3000 (psychological level), the pair could edge lower toward 1.2955 (Jul. 19 low) and 1.2900 (Sep. 1, 2017, low). On the upside, resistances align at 1.3135 (20-DMA), 1.3210 (50-DMA) and 1.3290 (Jul. 16 high). FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next Crude Oil WTI Technical Analysis: Oil bulls strike back as WTI jumps to $69.00 a barrel FX Street 5 years BoE MPC votes unanimously for a 25 bps rate hike. Governor Carney's comments weigh on GBP on Thursday. US Dollar Index gains traction and, once again, tests 95 handle. Following the initial bullish reaction to the BoE's interest rate decision, the GBP/USD made a sharp U-turn during governor Mark Carney's press conference and lost nearly 100 pips from its session high. Although it looked like the pair was trying to recover its losses as it rose toward mid-1.30s, a strengthening greenback made sure that the pair remained under pressure. As of writing, the pair was down 0.77%, or 100 pips,… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.