GBP/USD (current price: 1.2431)
The Bank of England left its monetary policies unchanged as it was widely expected. The British Retail Sales Report was also in line with expectations, with a monthly growth of 0.2%. The Pound still trended sharply lower throughout the day as the Dollar was pushed higher by the hawkish FED. The better than expected U.S. releases also helped the USD on Thursday. Interest rate expectations got even higher in the U.S., pushing Cable below 1.25 for the first time this month.
Our assessment: GBP/USD exited a short-term rising trend channel yesterday. The long-term picture is still neutral with strong support at 1.2350 and resistance at 1.2750.
