- The pound remains weak after the Bank of England decision.
- GBP / USD moves away from lows but remains in negative territory.
The GBP / USD is trading around 1.3925 after falling to 1.3889 following the Bank of England meeting (BoE). The rebound was guided by a fall in the dollar in the market. The greenback remains weak but the negative tone around the pound is weighing more.
The BoE kept the interest rate and purchase program unchanged as expected. The key piece of information was that the meeting was viewed from the dovish side, both for the words used and the fact that there was only one vote for a reduction in the purchasing program. Whoever voted in dissent, Haldane, will leave the BoE after this meeting.
All of the above pushed the pound down. The British currency became the worst performing among the G10 and is one of the few that still operates in negative territory against the dollar.
The greenback was not affected by the US economic data. There was a smaller drop than expected in the initial requests for unemployment benefits although the continued ones marked new lows in one year; Durable goods orders increased less than expected in May and the first quarter GDP reading was confirmed at 6.4%.
GBP / USD remains bearish in the very short term. Now 1.3950 / 55 is the first relevant resistance zone, followed by 1.3990. To the downside, a consolidation below 1.3910 would point to further weakness ahead, exposing the daily low, and 1.3860 (June 22 low).
Technical levels
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