GBP/USD pierces 1.4000 on BoE
- BoE left the refi rate unchanged at 0.50%.
- MPC vote was unanimous.
- BoE hinted at an earlier than expected rate hike.
The Sterling has recovered the smile following the BoE’s interest rate decision today, lifting GBP/USD to the 1.4000 region, fresh tops.
GBP/USD bid after BoE
Cable leapt to the area of daily tops in the boundaries of the psychological 1.4000 handle after the BoE noted rates may need to rise earlier than previously estimated.
In addition, the Bank of England left unchanged its monetary conditions, with the refi rate at 0.50% and the asset purchase facility at £435 billion, matching the broad consensus. The MPC vote was unanimous in this regard.
In the meantime, Mark Carney is expected to deliver a hawkish message at his press conference, where prospects of inflation and economic growth are expected to be reassessed.
GBP/USD levels to consider
As of writing, the pair is gaining 0.84% at 1.3993 facing the next hurdle at 1.4075 (high Feb.7) followed by 1.4280 (high Feb.2) and finally 1.4345 (2018 high Jan.25). On the downside, a breach of 1.3836 (low Feb.6) would aim for 1.3642 (55-day sma) and then 1.3457 (2018 low Jan.11).