Forex: GBP/USD backs away from highs

Despite broad dollar weakness and the fact that the BoE left its policy unchanged versus some expectations of an increase in the amount of QE, the pound failed to hold gains and surrendered most of them during the NY session.

GBP/USD retreated from a high of 1.5080, scored after the BoE announcement, sliding toward 1.5015 before finding support. At time of writing, the Cable is trading around 1.5020, only marginally above its opening price.

In terms of technical levels, if GBP/USD falls back below 1.5000, next supports are seen at 1.4965 (2013 los, Mar 7) and 1.4950 (Jul 12 low). On the other hand, if GBP/USD manages to break above 1.5080, next resistances could be found at 1.5100 (psychological level) and 1.5555 (Mar 6 high).