The Bank of England (BoE) voted 9-0 to hold the the overnight interest rate at the historic low of 0.25%. Here are some key takeaways:1) The recent rise in GBP suggests inflation pressure is low. This is one of the reasons BoE left rates unchanged. 2) The economy is expected to cool in 2017 due to 1-softer consumer spending 2-uncertainty for investment after Brexit. Here's a Bloomberg report with a nice summary:Bank of England Holds Rate and Says Inflation Rise May Slow in 2017GBP/USD 4H Chart 12/16(click to enlarge)Fed vs. BoE:- The 4H chart shows us that USD gained sharply after the Fed raised rates and announced expectation of 3 more hikes in 2017 (12/14). - However, we saw that GBP/USD stalled at 1.24 after the BoE announcement (12/15), and rallied to 1.25 during the 12/16 session. Technical and Fundamental Reasons to Fade:- The GBP/USD broke below a rising trendline this week. In the 4H chart, it looks like it was ready to fall back to those October lows around 1.21. - From a fundamental standpoint, we should ask what the direction of the Federal Reserve is compared to that of the Bank of England.- My opinion is that the Fed is more hawkish than the BoE. - Based on this opinion I am bearish on GBP/USD. - Therefore, I would consider fading the current rally with a target of 1.2150. Where to fade?- I think 1.26-1.2650 is an area we can consider fading GBP/USD with good reward to risk. Even around 1.2550, we might start seeing evidence that bears are still in charge. - A break back above 1.27 is too much of a pullback and would suggest that GBP/USD has more upside to go perhaps towards 1.28. - The ideal scenario would be some further pullback towards 1.26, where price stalls and flattens. - If price flattens and then breaks lower, it would be a sign that bears are still in charge, and I think we would have enough evidence for the bearish outlook.