GBP/USD plummets to lows around 1.2880 on BoE

The selling pressure is now quickly building up around the British Pound, dragging GBP/USD to the area of fresh lows around 1.2870.

GBP/USD breaches 1.2900 on BoE’s IR    

GBP-sellers have quickly turned up after the BoE left unchanged its monetary polisy stance at today’s meeting, as universally expected. In addition, MPC members have once again voted 7-1 (Forbes voted for a rate hike) favouring the current status quo.

The central bank revised higher its inflation forecast for 2017 to 2.7% (vs. 2.4% prev.), while it expects the CPI to pick in Q4 2017 (around 2.8%).

The BoE also noted that the UK may need to a tighter policy than yield curve inmplies.

GBP/USD levels to consider

As of writing the pair is down 0.39% at 1.2891 with the next support at 1.2873 (low May 11) followed by 1.2851 (20-day sma) and finally 1.2829 (low May 4). On the upside, a surpass of 1.2992 (2017 high May 8) would open the door to 1.3000 (psychological handle) and finally 1.3125 (high Sep.22 2016).