GBP/USD losing the grip post-BoE, near 1.4150

• Cable surpassed 1.4200 following steady BoE, fresh tops.
• MPC voted 7-2 to keep the current monetary status quo.
• Earlier, UK’s Retail Sales rose 0.8% MoM, more than expected.

The Sterling is now easing some ground vs. the buck and is dragging GBP/USD to the 1.4150 region after climbing beyond 1.4200 soon after the BoE decision.

GBP/USD fades the spike to 1.4200

Cable quickly rose to new peaks above 1.4200 the figure today after the Bank of England kept the refi rate unchanged at 0.50% at today’s meeting. In addition, MPC members voted 7-2 (McCafferty and Saunders dissenting) to keep the current monetary conditions. The move was largely anticipated by market participants.

However, sellers rapidly stepped after the MPC’s statement revealed that developments around Brexit continue to be a source of uncertainty regarding the economic outlook.

Regarding inflation, members expect consumer prices to grind lower in the next periods although they’re poised to remain above the 2% goal. In the same line, wages are seen improving in the next months.

In the meantime, Cable manages to keep business in the positive territory and advancing for the second session in a row. Despite nothing was mentioned in the BoE’s statement, market participants continue to see the ‘Old Lady’ raising rates at the May meeting.

GBP/USD levels to consider

As of writing, the pair is gaining 0.05% at 1.4148 facing the next hurdle at 1.4116 (high Mar.22) seconded by 1.4280 (high Feb.2) and finally 1.4345 (2018 high Jan.25). On the flip side, a break below 1.3987 (10-day sma) would aim for 1.3906 (short-term support line) and then 1.3886 (low Mar.16).