• GBP/USD declined on Monday as sterling attracted selling interest as investors attention turned to this week's Bank of England meeting and a domestic election campaign.
   
• The Bank of England meets on Thursday to discuss policy and issue its quarterly inflation report.
   
• The Bank surprised markets earlier this year by delivering a hawkish message on the chances of rises in interest rates, generally read as reflecting concern that further falls for pound would boost inflation and weaken consumer spending power.
   
• The pair made daily lows at 1.2927 but recovered to trade at 1.2941 levels in the afternoon US session.
   
• Further upside for this pair is expected to be limited as strong resistance level at 1.2987 is set to limit upside and bring decline towards lower levels.
   
• To the upside, immediate resistance can be seen at 1.2940, a break above this level would expose the cable to next resistance level at 1.2987 levels.
   
• To the downside strong support can be seen at 1.2897, a break below at this level will open the door towards next level at 1.2841.
  
  Resistance Levels
  
  R1:  1.2940 (50% Retracement level)
  
  R2: 1.2989 (61.8% Retracement level)
  
  R3: 1.3000 (Psychological level)
  
  Support Levels
  
  S1: 1.2897 (38.2 % Retracement level)                   
  
  S2: 1.2841 (23.6 % Retracement level)
  
  S3: 1.2801 (April 27th lows)