STERLING DROPS AFTER BOE DISAPPOINT
The GBPUSD pair has fallen towards the 1.3150 level, after the Bank of England disappointed financial markets and left rates unchanged. With six MPC members voting to keep interest rates at current levels, and just two dissenting MPC members called for a rate hike.
Further disappointment followed, as the UK inflation report downwardly revised this year's inflation outlook. Sterling earlier hit a 2017 trading high heading into the BOE meeting, reaching 1.3269 against the U.S dollar.
The GBPUSD pair remains bullish in the medium and long term, but bearish in the short term, whilst trading below the 1.3190 level. A move below the 1.3082 level will negate the GBPUSD pairs bullish medium-term outlook.
Key downside technical levels remain 1.3125, 1.3082 and the crucial 1.3047 level.
To the upside, key GBPUSD technical resistance is found at the daily pivot point, at 1.3190. Above this level, traders will look to target the recent gap created on the price charts, located at 1.3230.