GBP/USD tumbles to lows near 1.2420 on BoE

The British Pound is now intensifying its decline following the BoE’s February Inflation Report, dragging GBP/USD to the vicinity of 1.2420.

GBP/USD weaker on BoE

The pair met further selling pressure after BoE’s MPC member A.Haldane said he is comfortable with a neutral stance on the potential course of interest rates, while he reiterated that monetary policy could move in either direction.

Furthermore, MPC member I.McCafferty hinted at the fact that the economy could be closer to full employment than recent figures of wage growth show.

Spot remains under pressure amidst a solid performance of the greenback, which found extra legs following comments by FOMC’s P.Harker, opening the door for a rate hike at the March meeting.

The House of Lords has started on Monday its 2-day debate of Article 50, which is expected to pass without amendments today.

In the US docket, Philly Fed P.Harker (voter, hawkish), Minneapolis Fed N.Kashkari (voter, neutral) and San Francisco Fed J.Williams (2018 voter, neutral) are all due to speak later in the session.

GBP/USD levels to consider

As of writing the pair is losing 0.26% at 1.2428 facing the next support at 1.2379 (low Feb.15) ahead of 1.2344 (low Feb.7) and finally 1.2250 (low Jan.19). On the upside, a break above 1.2515 (20-day sma) would open the door to 1.2550 (high Feb.14) and finally 1.2715 (high Feb.2).