The Bank of England's Monetary Policy Committee at its yesterday's meeting voted to maintain the Bank Rate at 0.5%. The Committee also voted to maintain the stock of purchased assets financed by the issuance of central bank reserves at 375 billion pounds.
Upcoming event:
Today, traders eye on manufacturing production. The readings for it were negative for 2 months.
Technical view:
The five-week consolidation came to an end with negative bias. Both the central banks are getting ready to tighten the interest rates. The pair edged lower after testing 1.4981 and time frames look negative for the pair, with a possible double top pattern forming on the H4 chart, with tops at 1.4995. The 1.5000 mark looks hard for bulls to breach that. At yesterday's session, we recommended selling below 1.4850 with targets at 1.4800 and 1.4740. Panic will be triggered below 1.4740 towards new lows. Eventually, the cable fell towards 1.4685. The UK is slowly approaching its general election scheduled for May. Market participants expect the pound to get under a downward pressure in the near term, and gates are open for 1.4635 and 1.4500. Eventually, the pound looks weak against USD. The support is found at 1.4635 for the intraday session. Intraday resistance is seen at 1.4740 and 1.4810. Until the price closes below 1.4860, trades can use every rise to sell. After the UK election, we expect the pound to add 5%.
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