GBP/USD Continues to Lose Ground
Having breached 50-DMA support at 1.4250, cable extended losses further to a session low of 1.4218 before recovering slightly to trade around 1.4235 levels.
BOE rate cut bets rise
The
bird is volatile off late on account of Brexit fears. Plus, BOE H1 2016
rate cut bets have increased to 33% from the February survey which had
put probability at 10%. This is adding to the bearish pressure around
Sterling ahead of tomorrow’s BOE meeting.
The central bank is
not seen raising rates, but markets could be preparing for a possible
dovish talk ahead of June 23 referendum.
GBP/USD Technical Levels
The
immediate resistance seen at 1.4250 (50-DMA)), if breached, shall open
doors for 1.4330 (23.6% of 1.5930-1.3835) beyond which previous daily
high of 1.4348 could be put to test. On the other hand, acceptance below
1.42 would indicate a possibility of a drop to 11.4154 (38.2% of
1.4669-1.3835). Next major support is noted at 1.4079 (Jan 21 low).
News provided by: 
