GBP/USD eases from tops, still well bid near 1-1/2 week tops post-BoE
• The USD tumbles to multi-week lows and helps regain strong positive traction.
• Upbeat UK monthly retail sales data for Nov. remained supportive of the up-move.
• The BoE decided to maintain status quo and failed to provide any meaningful impetus.
The GBP/USD pair held on its strong intraday gains, albeit seemed struggling to extend the momentum further beyond the 1.2700 handle.
Despite the overnight not so dovish FOMC statement/economic projections, the US Dollar came under some intense selling pressure and assisted the pair to catch some aggressive bids on Thursday.
The British Pound got an additional boost following the release of stellar UK monthly retail sales data, recording a strong 1.4% m/m growth in November as compared to a modest 0.3% rise anticipated.
The pair momentarily moved beyond the 1.2700 handle to hit 1-1/2 week tops but lacked any follow-through after the BoE MPC voted unanimously to leave interest rates/asset purchase facility unchanged.
The political deadlock over the UK efforts to exit the European Union, coupled with easing inflationary pressure underscored the BoE decision to maintain status quo and failed to provide any fresh impetus.
With today's UK economic data/BoE decision out of the way, the USD price dynamics might continue to act as an exclusive driver of the pair's momentum amid absent relevant market moving economic releases from the US.
Technical levels to watch
Today Last Price: 1.2694
Today Daily change: 78 pips
Today Daily change %: 0.618%
Today Daily Open: 1.2616
Previous Daily SMA20: 1.2706
Previous Daily SMA50: 1.2858
Previous Daily SMA100: 1.2916
Previous Daily SMA200: 1.3238
Previous Daily High: 1.268
Previous Daily Low: 1.2607
Previous Weekly High: 1.276
Previous Weekly Low: 1.2477
Previous Monthly High: 1.3176
Previous Monthly Low: 1.2723
Previous Daily Fibonacci 38.2%: 1.2635
Previous Daily Fibonacci 61.8%: 1.2652
Previous Daily Pivot Point S1: 1.2588
Previous Daily Pivot Point S2: 1.2561
Previous Daily Pivot Point S3: 1.2516
Previous Daily Pivot Point R1: 1.2661
Previous Daily Pivot Point R2: 1.2707
Previous Daily Pivot Point R3: 1.2734