GBP/USD challenges 1.4100 post-BoE

The sterling keeps the negative bias today, now sending GBP/USD to test lows in the vicinity of 1.4110.

GBP/USD weaker on steady BoE, Brexit

The pair intensified the downside after the Bank of England left its monetary policy unchanged today, with the Bank Rate and the Asset Purchase Facility at 0.5% and £375 billion, respectively. In addition, BoE’s minutes showed a unanimous vote (9-0) favouring the current status quo.

Collaborating with the bearish sentiment, MPCs said the UK leaving the European Union would be the worst scenario for the UK, with the event likely to increase risks of spillover to the global economy and probably trigger further weakness around GBP.

 Fanning the flames, latest IG/Survation poll showed ‘Leave’ vote up with 45% vs. ‘Stay’ at 42%.

GBP/USD levels to consider

As of writing the pair is retreating 0.72% at 1.4104 and a break below 1.4091 (low Jun.14) would aim for 1.4088 (low Apr.14) and then 1.4004 (low Apr.6). On the other hand, the next resistance aligns at 1.4351 (100-day sma) followed by 1.4408 (55-day sma) and finally 1.4452 (20-day sma).