• 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.
  
  Resistance Levels
  
  R1: 1.2943 (50% Retracement Level)
  
  R2: 1.2988 (61.8% Retracement Level)
  
  R3: 1.3000 (Psychological levels)
  
  Support Levels
  
  S1: 1.2897 (38.2% Retracement Levels)
  
  S2: 1.2840 (23.6% Retracement Levels)
  
  S3: 1.2804 (April 26th lows)