GBPUSD technicals
The Bank of England cut its benchmark rate by 25 basis points, as widely expected, but the surprise came in the vote split. The decision passed with a 7-2-0 vote, falling short of the anticipated unanimous 9-0-0. Swati Dhingra and Dave Ramsden pushed for a deeper 50 basis point cut, while Catherine Mann and Huw Pill unexpectedly voted to keep rates unchanged at 4.50%. That unexpected hawkish dissent triggered a kneejerk reaction in sterling, with GBPUSD spiking from around 1.3241 to 1.3344 before fading and rotating back toward session lows.
Despite the rate cut, the BOE’s guidance remained unchanged, emphasizing a “gradual and careful” approach to easing—repeating the tone from March. As in previous meetings, markets quickly shifted focus from the headline rate move to the vote distribution, which revealed a more divided Monetary Policy Committee than anticipated.
Technically, the intraday reversal has turned the momentum back in favor of sellers. The pair has now retraced toward the day’s low at 1.3241, with a break below that level and the April 23 low at 1.3233 opening the door toward a swing area between 1.32017 and 1.32067. A move below that zone would target the 38.2% retracement of the April rally at 1.31603. With the price back under both the 100- and 200-hour moving averages, sellers have short-term control—but they’ll need a break of those downside targets to confirm and extend the bearish bias.
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