FXStreet notes that the Bank of England (BoE) was pretty much as expected, with one dissenter and modest tightening seen over the forecasting period. GBP/USD saw a modest uplift in the immediate aftermath of the policy decision. The move was short-lived, however. In the view of economists at TD Securities, cable should remain fairly well-anchored around current levels.

“The MPC voted to leave policy on hold today, with one dissent to reduce QE prematurely. There were two notable changes in the committee's communications: forward guidance was revised to acknowledge that some policy tightening would be appropriate by late-2024, and the sequence of tightening steps was revised, with a lower Bank Rate threshold to commence balance sheet runoff.”

“While we would not be surprised to see an upward extension to test 1.3960, cable may struggle to advance much beyond 1.3985 without fresh catalysts.”

“Solid support remains in place around 1.3875."