GBP/USD takes-out post-BOE highs, then retreats sharply

After a brief consolidation period near 1.3325 region in early trades, the pound regained poised against its American counterpart, now driving GBP/USD sharply lower from above post-BOE highs on 1.34 handle.

GBP/USD rides higher on BOE’s inaction

Currently, GBP/USD now rises 0.61% to 1.3422, having posted fresh two-week highs at 1.3481 levels. The cable quickly faded a spike to daily highs and now wavers near the mid-point of 1.34 handle, with the bulls still riding higher on the BOE status-quo at its monetary policy meeting held a day before. The BOE squashed markets’ expectations of a rate cut this month, triggering a fresh knee-jerk 160 pips rally in the major.

The strong gains seen in the GBP/USD pair can be also partly attributed to a renewed risk-on wave, fuelled by above estimates Chinese macro releases. Looking ahead, amid a data-quiet UK docket today, focus will remain on BOE Governor Carney’s speech ahead of a host of US economic data due later in the NA session.

GBP/USD Levels to consider

The pair has an immediate resistance at 1.3481 (daily high), above which 1.3500 (round figure) would be tested. On the flip side, support is seen at 1.3352 (daily low) below that at 1.3303 (20-DMA).