*Prices have retraced from an active area of resistance
*GBP/USD could find its support near 50D-SMA, in line with an active area of support
Fundamentals
Todays’s CPI data was the last nail in the coffin for those who were betting for the BOE to become hawkish. The CPI data is weak and this caused more selling pressure on Sterling which was already in a process of retracing from its six weeks high against the dollar.
This was the last important piece of information for BOE ahead of their monetary policy decision.
We expect the bank to be more focused on Brexit than anything else, and it is highly likely that Mark Carney’s term at the bank may be extended even further because of the strong possibility of a general election
Technical
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