The currency pair declined last week and tested 1,2372. GBP/USD stays above this level at the moment of writing.

The main event last week was the Bank of England meeting. The MPC has taken the decision to change nothing in the monetary policy. GBP had no significant support as US data was negative and supported US Dollar. However, on Friday GBP/USD went upwards due to positive US labor market data.

We expect GBP/USD to retest 1,2372. If it breaks down the support, GBP/USD is likely to move towards 1,2108.