GBP/USD extends losses ahead of BoE

GBP/USD has extended losses to fresh 2-week lows dragged down by a stronger dollar, minutes ahead of the Bank of England decision on monetary policy.

GBP/USD broke below the 1.2510 area and accelerated down, hitting a low of 1.2479 in recent dealings. The pair was last trading at 1.2485, down 0.57% on the day.

The Federal Reserve decided on Wednesday to raise the target for the target range for the federal funds rate to 0.5-0.75%. While the move was highly anticipated, the dot plot came by surprise as it showed most members expect three hikes throughout 2017 versus two hikes seen in September’s meeting.

Now attention turns to the Bank of England, although it is expected to stay on hold at today’s meeting.

GBP/USD technical levels

In terms of technical levels, next supports are seen at 1.2410 (50-day SMA) and 1.2385 (Nov 28 low). On the flip side, resistances could be found  at 1.2750 (100-day SMA), 1.2800 (psychological level) and 1.2859 (Oct 4 high).