The Pound remains under pressure ahead of the highly anticipated BOE’s monetary policy meeting. The central bank is expected to keep the interest rates at 0.10% and increase the balance sheet from 645B to 725B which could provide a short-term bounce to the Cable. However, if the meeting minutes show any signs of possible rate cuts in the near future, with rumours circulating that BoE Governor Andrew Bailey may cut IR into negatives then this is not good for sterling and the pair will likely break below the 1-month trend line 1.2480-1.25, as the bears will certainly take complete control targeting the 200-period SMA.
Support: 1.25 / 1.2415
Resistance: 1.26/ 1.2640
