FxWirePro: GBP/USD drops to four-week low after dovish remarks from Mann

• GBP/USD dipped to four-week low on Thursday as sterling was pressured after a dovish tilt from Bank of England policymaker Catherine Mann, a member of the Monetary Policy Committee (MPC).

• Mann described Wednesday’s UK January inflation figures as “good numbers,” a comment interpreted by markets as opening the door to policy easing.

•  Her remarks have increased expectations that she could support a rate cut at the Bank of England’s March meeting, boosting the probability of a near-term move.

• Mann voted with the majority in a 5-4 decision by the MPC this month to keep rates on hold. She said at the time that the time for a cut was closer.

•Investors were putting the likelihood of a quarter-point rate cut by the BoE in March at about 80% on Thursday.

•   Immediate resistance is located at 1.3561( 50%fib), any close above will push the pair towards 1.3654( SM A 20)

•  Strong support is seen at 1.3439(61.8%fib) and break below could take the pair towards 1.3404(Lower BB).

  Recommendation: Good to sell  around 1.3450, with stop loss of 1.3500 and target price of 1.3380.