GBP/USD hovers near lows as May is named UK PM, BoE eyed

GBP/USD has retraced some of its recent gains on Thursday, pulling back from a 9 day high, as investors await Bank of England decision and Cameron officially resigns as UK PM and Theresa May takes over.

GBP/USD snapped a 4-day winning streak and retreated from a high of 1.3336 to a low of 1.3155 in recent dealings. Cable was last trading around 1.3164, down 0.62% on the day as main focus now turns to BoE decision.

The BoE will decide on monetary policy for first time after the Brexit vote, and investors will be scrutinizing every word after Carney hinted at more easing this summer.

GBP/USD levels to watch

In terms of technical levels, next resistances could be faced at 1.3339 (Jul 4 high), 1.3400 (psychological level) and 1.3482 (Jun 27 high). On the other hand, supports are seen at 1.3107 (10-day SMA), 1.2970 (Jul 12 low), 1.2849 (Jul 11 low) and 1.2796 (31-year low, Jul 6).