Cable dropped to near 1.38 yesterday following news that the EU launched legal action against the UK for breaching the Northern Ireland protocol. Additionally, BoE Governor Andrew Bailey said that the BoE is committed to buying bonds at an elevated pace, putting additional pressure on the Pound. However, buyers took advantage of the GBP dip pushing price back above 1.39 ahead of the FOMC decision due after the London market close. If the recent strong momentum persists, we could see the British Pound retest the key important 1.40 level.
Support: 1.3850 / 1.3780
Resistance: 1.3950 / 1.40
