GBP/USD still below 1.3400 on BoE

The Sterling keeps the selling bias intact today, with GBP/USD now hovering over the 1.3380 area following a somewhat dovish-ish BoE.

GBP/USD muted on BoE-speak

The pair kept the composure following the BoE’s Inflation Report Hearings and speeches by MPC members to the Treasury Select Committee.

Governor M.Carney defended the implementation of extra stimulus in order to spur inflation and employment and keep financial stability, adding that more easing is in the pipeline in case of need.

In the same line, MPC member K.Forbes coincided that further easing remains a possibility, adding at the same time that GBP is acting on prices. Members G.Vlieghe and J.Cunliffe have also agreed that consumer prices should pick up sooner than initially estimated.

Regarding ‘Brexit’ effects on the domestic economy, members highlighted its impact on the domestic demand and employment, although uncertainty remains high.

GBP/USD levels to consider

As of writing the pair is losing 0.44% at 1.3382 and a breakdown of 1.3202 (55-day sma) would target 1.3151 (20-day sma) en route to 1.2863 (low Aug.15).On the flip side, the initial resistance aligns at 1.3447 (high Sep.6) followed by 1.3481 (high Jul.15) and then 1.3646 (38.2% of the post-Brexit down move).