The GBP/USD pair fell towards 1.2934 in the early US session on Wednesday as sterling came under selling interest ahead of this week's Bank of England inflation report and policy meeting. Investors will be watching the B…
The GBP/USD pair fell towards 1.2934 in the early US session on Wednesday as sterling came under selling interest ahead of this week's Bank of England inflation report and policy meeting.
Investors will be watching the BoE's "Super Thursday" for any signs of change in the Bank's stance of keeping UK interest rates at record lows.
Inflation has overshot the Bank's 2-percent target, but some say its surge could be limited by sterling's bounce after Theresa May's announcement of a June general election.
The ongoing weakness is set to continue for this pair as the resistance level at 1.2983 is likely to act as strong barrier to the bulls and bring a further decline towards lower levels.
To the upside, the strong resistance can be seen at 1.2954, a break above this level would expose the cable to next resistance level at 1.2983.
To the downside immediate support can be seen at 1.2927, a break below at this level will open the door towards next level at 1.2889.
