Post-BOE dip absorbed

That didn't take long.

The pound sold off on the total lack of signals regarding a Bank of England rate hike in today's rate decision. The MPC said risks to its inflation projection "lay a little on the downside" reflecting global factors.

The pound quickly fell to 1.5110 on the headlines but bottomed within an hour and has slowly been on the comeback since. It hit 1.5180 a short time ago and is now at 1.5170.

I'm impressed by the turnaround. There is no good reason to buy cable today and the US dollar is broadly stronger except vs AUD and NZD, but those are for domestic reasons.

There have been plenty of opportunities and reasons to sell the pound but it's hanging tough.

In the bigger picture, however, the steady downtrend is impossible to ignore. I think the pound can do well on the cross and could catch a bid ahead of the Fed on position squaring but the GBP/USD trend is lower.