The British Pound erased its earlier gains and dropped below 1.3200 against the Greenback after the US Census Bureau reported stronger-than-expected US Retail Sales.
GBP/USD remains upward biased, but short-term momentum has shifted bearish after dipping below 1.3200. Key support lies at 1.3146, with further downside targets at 1.3100 and the recent low of 1.3001. On a rebound, resistance levels include 1.3200, the YTD high of 1.3266, and the March 22 peak at 1.3298. Even though the data didn’t change expectations for a 50-basis points Fed rate cut, the GBP/USD posted losses of over 0.20% and exchanged hands at 1.3186.
How do the decisions of the Bank of England impact on the Pound Sterling? The single most important factor influencing the value of the Pound Sterling is monetary policy decided by the Bank of England. The BoE bases its decisions on whether it has achieved its primary goal of “price stability” – a steady inflation rate of around 2%. Its primary tool for achieving this is the adjustment of interest rates.
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