FxWirePro: GBP/USD falls after BoE holds rates and warns of further hikes

• GBP/USD slipped lower on Thursday after the Bank of England left interest rates unchanged and announced changes to its bond-selling programme.

• The Bank of England held rates steady on Thursday, but cautioned that prolonged conflict in Iran could force further rate hikes as it expects UK inflation to top 4% early next year.

•The BoE's Monetary Policy Committee ‌voted 6-3 to keep rates at 3.75%, in line with July's vote and matching economists' median forecast in a Reuters poll.

• In a surprise move, the committee also paused government bond sales for six months and began a longer-term overhaul of its balance-sheet reduction strategy..

• The decision comes after a sharp rise in oil prices in recent months, driven by the Middle East conflict, which has fuelled inflation and prompted policymakers globally to reassess monetary policy.

•   Immediate resistance is located at 1.3405(Daily high), any close above will push the pair towards 1.3479(38.2%fib)

•  Strong support is seen at 1.3331(38.2%fib) and break below could take the pair towards 1.3275(Aug 28th low).

  Recommendation: Good to sell  around 1.3360 with stop loss of 1.3420 and target price of 1.3300