- The pound remains among the worst performers on Thursday after the Bank of England.
- The pound returns lower after failing to recover 1.4000.
The GBP/USD it is trading slightly above 1.3900, under pressure amid a rally in the US dollar and after a sharp drop in the pound following the Bank of England meeting.
BoE and US dollar hit GBP / USD
The pound tumbled after the Bank of England released its statement from the latest Monetary Policy Committee (MPC). The central bank kept policy unchanged as expected, but it was seen as a dovish rally, causing the pound to fall. GBP / USD bottomed out at 1.3888 and then rebounded to the upside, meeting resistance at 1.3930. It recently tested the lows.
The US dollar gained momentum during the US session. US economic data was largely ignored by market participants and the currency cut losses across the board in recent hours, likely amid some optimism about a bipartisan deal in the US Congress. for the Biden infrastructure program.
The pound resumes the fall
The 1.4000 zone limited GBP / USD’s recovery after falling sharply last week. The pound was unable to regain that area and began to retreat. On Thursday, the pair appears to be picking up lower. The next strong support is seen at 1.3850 / 60, a break to the downside would add more pressure.
On the positive side, a recovery above 1.4000 would alleviate the negative bias and should favor an extension to 1.4065 (20-day moving average).
Technical levels
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