GBP/USD firmer, eyes 1.2360 post-BoE

The Sterling met extra buying pressure on Thursday following the BoE interest rate decision, lifting GBP/USD to fresh tops in the mid-1.2300s.

GBP/USD bid after BoE

The pair advanced further north of the 1.2300 handle today after the BoE left unchanged its monetary status quo, with the refi rate at 0.25%, the asset purchase facility at £465 billion and purchases of corporate bonds at £10 billion.

GBP picked up extra pace after the BoE minutes showed MPC members voted  8-1 to leave the current monetary conditions on hold, with member Forbes the only dissenter. The minutes also showed that majority of members see a rate hike may be needed sooner.

The BoE also reiterated that the likely inflation overshoot is almost exclusively due to GBP weakness, while it emphasized that there are limits to tolerance of levels above the inflation target.

GBP/USD levels to consider

As of writing the pair is up 0.43% at 1.2346 and a breakout of 1.2376 (55-day sma) would aim for 1.2409 (100-day sma) and finally 1.2572 (high Feb.24). On the other hand, the next support lines up at 1.2241 (low Mar.16) followed by 1.2138 (low Mar.15) and then 1.2106 (low Mar.14).