GBP/USD slide further below 1.2500 handle after BoE status-quo

The GBP/USD pair maintained its bearish bias for the third consecutive day and extended the slide further below 1.2500 psychological mark after BoE decision.

Currently trading around 1.24780-65 region, testing fresh two week lows, BoE's MPC unanimously voted to leave interest-rates and QE program unchanged. The decision to keep benchmark interest rates at record low level of 0.25% and QE at QE £435 billion provided little respite for the bulls and the pair built on Wednesday's sharp slide from above 1.2700 handle.

Moreover, resurgent greenback buying interest, in wake of Wednesday’s hawkish Fed outlook, is also contributing to the selling pressure around the major.

From technical perspective, the pair seems to have decisively broken below a short-term ascending trend-channel support and hence, remains vulnerable to continue with its depreciating move in the near-term. 

Next in focus would be US economic docket, featuring – CPI print, Philly Fed Manufacturing Index and weekly jobless claims. 

Technical outlook

Valeria Bednarik, Chief Analyst at FXStreet, notes, "Technically, the pair is struggling around a key support area where the 61.8% retracement of the latest bullish run converges with a daily ascendant trend line coming October 25th low of 1.2088. The price has briefly fell below them around 1.2520, although renewed selling pressure below 1.2505 should see the pair extending its slide down to 1.2470 first, en route to the 1.2420/40 region."