GBP / USD falls to test daily lows as US dollar gains ground

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  • The pound remains among the worst performers on Thursday after the BoE.
  • The cable goes down again after being unable to recover 1.4000.

GBP / USD is trading slightly above 1.3900, under pressure amid a rally in the US dollar and following a sharp decline in the pound following the Bank of England meeting.

BoE and US dollar hit GBP / USD

The pound fell after the BoE released its statement from the last Monetary Policy Committee (MPC). The central bank kept its policy unchanged as expected, but it was seen as a conciliatory meeting, triggering the fall of the pound. GBP / USD hit a low at 1.3888 and then rebounded higher finding resistance at 1.3930. Recently he tested the stockings.

“This was clearly not the hawkish tilt on which some market players had placed their bets. Attention will quickly turn to the August meeting, when the MPC will have a full set of new staffing forecasts and will have to make a new decision on the pace of gilts purchases, ”Rabobank analysts said.

The US dollar gained momentum during the US session. US economic data has been mostly ignored by market participants, and the currency has cut losses across the board in the past few hours, likely amid some optimism over a bipartisan deal in Congress. American for the Biden infrastructure program.

The cable takes over the slide

The 1.4000 zone capped the GBP / USD rally after falling sharply last week. The pound failed to regain this area and began to retreat. On Thursday, the pair seems to be heading lower again. Next strong support is seen at 1.3850 / 60, a lower break would add more pressure.

On the upside, a rally above 1.4000 would mitigate the negative bias and should favor an extension to 1.4065 (20-day moving average).

Technical levels



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