GBP/USD approaches 1.2500 on steady BoE

The British pound accelerated its upside today, now sending GBP/USD to the vicinity of the key barrier at 1.2500 the figure.

GBP/USD bid after BoE

Spot met extra buying pressure after the Bank of England left unchanged it monetary stance, with the refi rate at 0.25%, the asset purchase facility at £435 billion and purchases of corporate bonds for up to £10 billion, matching initial estimates.

Furthermore, BoE minutes showed MPC members voted unanimously to keep the current status quo. Additionally, the Quarterly Inflation Report added that the central bank’s monetary policy could respond in either direction in order to achieve its inflation goal.

The pair is advancing nearly 1.5% in the wake of the BoE decision, approaching multi week-tops in the 1.2500 neighbourhood ahead of the press conference by Governor M.Carney.

GBP/USD levels to consider

As of writing the pair is gaining 1.41% at 1.2481 facing the next resistance at 1.2585 (2-month resistance line) ahead of 1.2791 (55-day sma) and finally 1.3031 (100-day sma). On the other hand, a breach of 1.2086 (low Oct.11) would open the door for a test of 1.1450 (low post-‘flash crash’ Oct.7).

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