GBP/USD reverts the decline, eyes 1.2800 post-BoE

The Sterling has recovered the smile following the BoE meeting on Thursday, lifting GBP/USD to fresh daily highs beyond 1.2780.

GBP/USD bid after BoE

Cable found fresh buyers after minutes from today’s BoE meeting showed MPC members voted 5-3 favouring the current monetary status quo. MPC members Forbes, McCafferty and Saunders voted for a 25 bp hike.

The Bank of England left unchanged its refi rate at 0.25% and the asset purchase facility at £435 billion, broadly in line with prior surveys.

BoE minutes noted the depreciation of the Sterling remains behind the pick up in consumer prices, while MPC members agreed that raise rates should be gradual and limited.

In addition, some MPC members expressed reduced tolerance in allowing inflation figures to run above the central bank’s target.

GBP/USD levels to consider

As of writing the pair is up 0.35% at 1.2791 facing the next resistance at 1.2818 (high Jun.14) and then 1.2873 (20-day sma). On the downside, a break below 1.2632 (low Jun.9) would open the door to 1.2626 (100-day sma) and finally 1.2566 (200-day sma).