Sterling drops notably on the lack of hawkish surprise from BoE rate decision. While it sounded upbeat on the outlook, the MPC, except chief economist Andy Haldane, would prefer to wait until August to take any policy actions.
GBP/USD’s decline argues that it’s rejected by 4 hour 55 EMA. Focus is now back on 1.3859 minor support. Break will suggest that rebound from 1.3785 has completed at 1.4000, and the decline from 1.4248 is ready to resume through 1.3785 low.
EUR/GBP’s focus is also back on 0.8600 minor resistance. Break there will argue that choppy fall from 0.8718 has completed at 0.8529. Stronger rise would than be seen back to 0.8670 resistance for confirmation.
