GBP/USD sinks below 1.3200 post-BoE

The Sterling has now dipped to fresh lows vs. the greenback, sending GBP/USD to sub-1.3200 levels.

GBP/USD lower on BoE

The pair met extra selling pressure after the BoE cut its benchmark rate for the first time since 2009, this time by 25 bp to 0.25%, broadly in line with market expectations. Furthermore, the MPC vote for a rate cut was unanimous.

Additionally, the ‘Old Lady’ boosted its Asset Purchase Facility by £60 billion to £435 billion from £375 billion.

Regarding the Quarterly Inflation Report, the central bank slashed its growth forecast to 0.8% in 2017 from May’s 2.3%, although it has not contemplated the possibility of a recession.

The BoE has left the door open for another rate cut in the upcoming meetings.

GBP/USD levels to consider

As of writing the pair is retreating 1.07% at 1.3182 and a break below 1.3061 (low Jul.20) would expose 1.2849 (low Jul.11) and finally 1.2796 (2016 low Jul.6). On the flip side, the next up barrier lines up at 1.3373 (high Aug.3) followed by 1.3481 (high Jul.15) and finally 1.3535 (high Jun.29).