GBP/USD gives up post-BoE gains

• GBP/USD falls nearly two cents from highs
• Cable holds onto minor daily gains

GBP/USD has given up most of its BoE-inspired gains, falling more than 180 pips over the last hours.

Cable rose to a peak of 1.4066 during the European session following Bank of England’s monetary policy decision and Carney’s speech.Carney said that the UK economy remains broadly in line with forecasts and inflationary pressures are likely to firm. Regarding interest rates, Carney stressed that extra rate hikes will be gradual and limited.

However, the pound failed to sustain gains and pulled back to 1.3881 before finding support and bouncing slightly back above 1.3900. At time of writing, GBP/USD is trading at 1.3914, still 0.28% above its opening price.

GBP/USD technical levels

In terms of technical levels, next supports are seen 1.3845 (intraday low), 1.3800 (psychological level) and 1.3755 (Jan 17 low) . On the flip side, resistances could be found at 1.4066 (post-BoE high), 1.4149 (Feb 5 high) and 1.4200 (psychological level).