The British pound has declined sharply against the U.S dollar, hitting 1.3100, following the Bank of England’s monetary policy decision. The GBPUSD pair tumbled, despite the BOE hiking UK interest rates 0.25 basis points as expected. The pound declined, as UK policy makers struck a dovish tone towards inflation and the UK economy, inside the BOE Meeting Minutes. Price-action currently trades around the 1.3130 level, as traders now price-in the BOE is unlikely to raise UK rates again this year.
The GBPUSD pair remains strongly bearish while trading below the key 1.3157 technical level. Further selling remain likely towards the 1.3070 and 13023 level, while price trades below 1.3157.
Should price-action break back above the 1.3157 level for a sustained period, further upside towards 1.3200 and 1.3236 should be expected.
