GBP is weakening following BoE decision – OCBC

Pound Sterling (GBP) weakened following Bank of England decision to keep Bank Rate unchanged although that had been expected. USD/GBP was last at 1.3542 levels, OCBC's FX analysts Frances Cheung and Christopher Wong note.

Hawkish BoE stance might limit the downside for GBP/USD

"The MPC reiterated its commitment to a 'gradual and careful' approach to any future rate cuts. Meanwhile, Governor Bailey acknowledged that further reduction is likely, but he emphasised that the timing and scale remain uncertain given the recent uptick in inflation."

"The relatively hawkish BoE stance versus the Fed could limit the downside for GBP/USD. Resistance at 1.3600 before the next at 1.3790. Support at 1.3470 (50 DMA)."