GBP/USD drops to lows post-BoE, near 1.2630

GBP/USD met some downside pressure after the BoE left its monetary policy unchanged at today’s meeting.

GBP/USD upside capped around 1.2700

The pair showed some volatility after the BoE matched expectations today, leaving the refi rate and the asset purchase facility at 0.25% and £435 billion, respectively. The central bank also maintained its corporate bond purchases at £10 billion.

The BoE noted the monetary policy could respond in any direction, while its forecasts for growth and inflation have risen to 2%.

MPC members have voted unanimously to keep the monetary status quo unchanged, broadly in line with market consensus.

Next on tap will be the press conference by Governor M.Carney.

GBP/USD levels to consider

As of writing the pair is gaining 0.07% at 1.2669 facing the next hurdle at 1.2706 (high Feb.2) followed by 1.2729 (high Dec.13 2015) and finally 1.2776 (high Dec.6 2015). On the other hand, a breakdown of 1.2542 (low Feb.1) would open the door to 1.2473 (100-day sma) and finally 1.2410 (low Jan.31).