• GBP/USD pinned near a seven-month low on Wednesday as traders positioned ahead of Thursday's Bank of England meeting.
• The Bank of England is widely expected to hold rates steady on Thursday, though recent softer inflation and wage data could strengthen the case for a rate cut.
•A slew of data released last month, particularly a softer-than-expected inflation reading, boosted expectations of BoE easing and pressured the pound.
•Adding to market attention on the pound is the upcoming UK budget, where Finance Minister Rachel Reeves suggested extensive tax rises during her speech on Tuesday.
•On the data front, output and new orders in Britain's services industry picked up last month, according to a survey showing that expectations for activity in the next 12 months were the highest since October 2024.
• Immediate resistance is located at 1.3185(38.2%fib), any close above will push the pair towards 1.3287 (SMA 20)
• Strong support is seen at 1.3006(50%fib) and break below could take the pair towards 1.2927(Lower BB).
Recommendation: Good to sell around 1.3050 , with stop loss of 1.3100 and target price of 1.2950
