The British pound has moved back towards the key 1.3500 level against the U.S dollar, after the Bank of England struck a more dovish tone at yesterday’s policy meeting. The GBPUSD pair had bounced prior to the BOE decision, but quickly fell-lower on the dovish BOE Policy Statement, hitting 1.3459. Sterling traders are likely to focus on the pair’s 200-day moving average, and further downside if sellers push price back below the 1.3500 level.
The GBPUSD pair remains bearish while trading below the 1.3500 level. Further losses towards 1.3459 and 1.3425 seem possible.
If the GBPUSD pair starts to hold price above the 1.3500 level, key intraday resistance is now found at the 1.3542 and 1.3592 levels.
