GBP/USD eases from 1.20 mark post-BoE, downside seems limited
- GBP/USD stalled its intraday positive move near the key 1.20 psychological mark.
- The BoE showed radiness to expand asset purchases and exerted some pressure.
- The downside remains cushioned amid persistent bearish pressure around the USD.
The GBP/USD pair maintained its bid tone, albeit quickly retreated around 50 pips, to mid-1.1900s post-BoE announcement.
The pair stalled its intraday positive move to over one-week tops and witnessed a modest pullback from the key 1.20 psychological mark after the Bank of England announced its latest monetary policy decision and left interest rates unchanged at 0.10%.
The UK central bank, in the accompanying policy statement, indicated that MPC stands ready to expand asset purchase further if needed, which seemed to be the only factor that exerted some downward pressure on the British pound.
The downside, however, remained cushioned amid the prevailing bearish sentiment surrounding the US dollar, which remained on the defensive in the wake of the Fed's unlimited QE and the Fed Chair Jerome Powell's comments on Thursday.
It will now be interesting to see if the pair is able to capitalize on the recent recovery move from 35-year lows or extends its intraday rejection slide as market participants now look forward to the US economic docket for a fresh impetus.
Technical levels to watch