FxWirePro: GBP/USD drops towards 1.35 after BoE rate decision

• GBP/USD slipped sharply lower on Thursday after BoE maintained rates in narrow vote.

• The BoE held rates after an unexpectedly narrow 5-4 vote, and indicated cuts ahead if an expected fall in inflation proves sustainable, with analysts perceiving the split a more dovish stance than anticipated earlier.

• The BoE cut its forecast for economic growth for 2026 to 0.9% from a previous estimate of 1.2% before a pickup in 2027 and 2028. It also raised its forecast for the peak in unemployment to 5.3%, up from 5.1% previously.

• The MPC left its guidance about the outlook for interest rates largely similar to its message after its previous meeting in December.

•   Immediate resistance is located at 1.3669(38.2%fib), any close above will push the pair towards 1.3737(Feb 4th high)  

•  Strong support is seen at 1.3529( 50%  fib) and break below could take the pair towards 1.3461(Sep 22nd low).

  Recommendation: Good to sell  around 1.3540 with stop loss of 1.3600 and target price of 1.3460