GBP/USD consolidates around 1.2750, supported by BoE vote

Since the beginning of the American session, the GBP/USD pair has been moving sideways, consolidating more than 50 pips above the level it had before the Bank of England’s decision. 

Cable is up marginally on Thursday despite a stronger US dollar. It peaked at 1.2794 instants after the release of the BoE statement and minutes, and then pulled back. Price is moving between 1.2745 and 1.2775, holding most of the gains that followed the BoE. 

The central bank kept monetary policy unchanged as expected but the 5 to 3 vote (3 members asking for an immediate rate hike) was a surprise and boosted the pound in the market. Yesterday’s slightly hawkish tone from the Fed, was partially offset by the BoE vote. 

BoE: No change expected until 2019 despite hawkish surprise - Danske Bank

GBP/USD is trading at the same level it opened on Monday. Still near monthly lows and facing bearish pressure amid political uncertainty in the UK and following the FOMC meeting. The BoE tone today removed part of the negative momentum. 

BoE Reaction: Risk-reward doesn't favour chasing near-term GBP upside - ING

Technical levels 

To the upside, resistance levels might be located at 1.2775, 1.2815/20 (Jun 14 high), 1.2870 and 1.2900. On the downside, support could be seen at 1.2720 (Jun 14 low), 1.2685/90 (daily low) and 1.2635 (Jun 12 low).