GBP/USD slides below 1.30 mark, back closer to weekly lows ahead of BoE
- Uncertainty about the BoE rate decision continues to weigh on the GBP.
- The risk-off mood benefitted the USD and added to the selling bias.
- All eyes remain glued to the highly-anticipated BoE policy decision.
The selling bias around the sterling picked up pace in the last hour and dragged the GBP/USD pair back below the key 1.30 psychological mark.
Following a brief consolidation through the Asian session on Thursday, the pair met with some fresh supply and drifted into the negative territory for the sixth consecutive session.
GBP remains depressed ahead of BoE
The latest leg of a sudden drop over the past hour or so lacked any fundamental catalyst and could be solely attributed to some repositioning trade ahead of the Bank of England (BoE) meeting.
Against the backdrop of persistent fears of a no-deal Brexit, the uncertainty over the highly anticipated BoE decision turned out to be one of the key factors weighing on the British pound.
This coupled with a fresh wave of the global risk-aversion trade benefitted the US dollar's perceived safe-haven status and further collaborated to the pair's slide back closer to weekly lows.
It, however, remains to be seen if the pair continues to show some resilience at lower levels or the current slide marks a near-term bearish breakdown ahead of the BoE announcement.
Later during the early North-American session, the release of the Advance US GDP growth figures for the fourth quarter of 2019 will also be looked upon for some meaningful trading impetus.
Technical levels to watch