GBP/USD weaker around 1.2400 handle as BOE MPC testifies

Selling pressure around the British Pound has intensified in the past hour of trading, with the GBP/USD pair now on the verge of decisively breaking below 1.2400 handle.

The pair's initial downslide, led by disappointing UK CPI print for October, gained momentum during BoE's quarterly inflation report hearings, where the BOE Governor and several MPC members were testifying on inflation and the economic outlook before Parliament's Treasury Committee. 

During the testimony, BOE Governor Mark Carney said that central bank has a neutral bias regarding monetary policy and noted that there were ‘risks on both sides’ on economic growth. He further added that although there is no guidance on the future monetary policy stance, the recent depreciating move in the British Pound reflects market expectations of slower UK economic growth.

Later during NA session, US economic releases - monthly retail sales, Empire State Manufacturing Index and import prices, will be looked upon for fresh impetus and short-term trading opportunities.

Technical levels to watch

On a sustained weakness below 1.2400 round figure mark, the pair is likely to aim towards its next support near 1.2350 level before eventually dropping to 1.2300 handle. On the upside, any recovery attempt above 1.2450 level might now confront resistance near 1.2490 area above which the pair seems to aim towards session swing high resistance near 1.2530 region.