FxWirePro: GBP/USD outlook weaker on renewed downside pressure
The Sterling remained in strong bearish tone against the dollar on Tuesday as sellers stepped in ahead of Bank of England inflation report and BOE policy meeting this Thursday. The BoE's "Super Thursday" will be closely …
The Sterling remained in strong bearish tone against the dollar on Tuesday as sellers stepped in ahead of Bank of England inflation report and BOE policy meeting this Thursday.
The BoE's "Super Thursday" will be closely watched for clues on how long UK interest rates will remain at record lows.
Inflation has risen above the Bank's 2 percent target, outpacing wage growth and hitting the consumers who have shored up the economy since last year's Brexit vote.
Investors will also be on the look-out for whether the Bank cuts its economic growth forecasts, having raised them in its last report in February.
Currently, the currency pair is trading at 1.2919 levels, it is set to decline further towards 1.2870 and later 1.2850 levels in the short term.
To the upside, the strong resistance can be seen at 1.2943, a break above this level would expose to cable to next resistance level at 1.2988.
To the downside immediate support can be seen at 1.2897, a break below will open the door towards next level at 1.2840.
