A large indigenous moves 🪄GBP/USD: The Bank of England keeps policy unchanged – Scotiabank

The BoE kept the interest rate unchanged at 4.75%, as expected. The British pound (GBP) traded well from previous session highs, dropping below 1.26 at the start of trading, notes Scotiabank's Chief Currency Strategist Shaun Osborne.

The British pound falls after the Bank of England kept policy unchanged

"c. The political statement confirmed recent comments from policymakers, noting that a 'gradual approach' to future policy easing was the right approach. The Bank stated that it cannot promise when or how much it will ease policy next year. The British pound weakened after this statement."

"GBP traded well from the highs of the previous session and returned below 1.26 at the start of trading here. Spot trends are weak, and momentum favors further USD growth. Cable appears ready to soon test the key trend support at 1.2520. Resistance is at 1.2650/60."