GBP/USD weaker, below 1.3300 ahead of BoE

The British pound is following the rest of the risk-associated assets on Thursday, now taking GBP/USD to sub-1.3300 levels, or daily lows.

GBP/USD all the attention to BoE

Spot has come under renewed downside pressure after failing to clinch the 1.3400 handle in recent sessions, now losing ground to the 1.3290 area against a backdrop of swelling cautiousness in light of the BoE meeting due later today.

GBP will take centre stage as the ‘Old Lady’ is expected to lower its benchmark rate by 25 bp and increment the size of its Asset Purchase Facility by £50-£70 billion, as well as some additional measures regarding the ‘Funding for Lending Scheme’ (FLS).

GBP/USD levels to consider

As of writing the pair is retreating 0.21% at 1.3297 and a breach of 1.3193 (20-day sma) would allow a test of 1.3061 (low Jul.20) and then 1.2849 (low Jul.11). On the flip side, the initial hurdle aligns at 1.3373 (high Aug.3) followed by 1.3481 (high Jul.15) and finally 1.3535 (high Jun.29).

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