Investing.com - The pound was little changed against the dollar on Thursday after the Bank of England kept monetary policy unchanged in a widely anticipated decision, as investors remained on the sidelines ahead of the European Central Bank’s policy announcement later in the session.
GBP/USD touched session highs of 1.6751 before slipping 0.07% to trade at 1.6709.
Cable was likely to find support at 1.6655, Wednesday’s low and resistance at 1.6767, the high of February 28.
The BoE voted to leave U.K. interest rates unchanged at their record low of 0.5%, and also left its quantitative easing program steady at 375 billion pounds.
Investors remained wary ahead of the ECB rate decision and press conference amid speculation that the bank could tighten monetary policy.
The ECB was expected to hold off on cutting rates to fresh record lows but was expected to take other steps to tighten policy, amid ongoing concerns over the subdued inflation outlook for the euro area.
Figures released last Friday showed the annual rate of inflation in the euro area remained unchanged at 0.8% in February, well below the ECB's target of just under 2.0%.
The euro pushed higher against sterling, with EUR/GBP rising 0.17% to 0.8227.
The single currency also edged higher against the dollar, with EUR/USD rising 0.11% to 1.3747.