BoE Pause Pulls Back Sterling: GBP/JPY Dips to 207.92 Despite Hawkish Undercurrents

GBPJPY pared some of its gains after rate pause by BOE. It reached an intraday low of 207.92; now it is about 208.26.

Though the three votes against a 25-basis-point rise and warnings that energy-driven CPI inflation may top 4% in early 2027 point to a hawkish fundamental stance, the Bank of England's Monetary Policy Committee voted 6–3 to hold the Bank Rate at 3.75% for the sixth straight meeting. Along with the rate decision, authorities unilaterally agreed to a long-term quantitative tightening strategy meant to bring gilt holdings to zero by means of £20 billion in annual active sales combined with bond maturities, therefore aiming for a total average reduction of around £46 billion every year until 2034. Though Governor Andrew Bailey confirmed readiness to toughen policy should inflation remain sticky, the British currency first shot up before falling back as currency markets took the decision as less hawkish than the most extreme estimates.

 Major support- 207/205. Major resistance: 209.10/210/211.60/212.66/213/214/215.

 It is good to sell on rallies around 208.58-60 with SL around 209.50 for a TP of 207.