Traders see moderately large bids on dips toward the 1.6600 level this morning but warn of stop-loss sell orders below the 1.6585 support level and again below 1.6550.
A dour outlook for the UK economy is expected from the BOE Wednesday when it releases its quarterly inflation report. Deflation risks are expected to be highlighted in the wake of the surprise extension of the quantitative ease policy last week.
Offers are seen in the 1.6650/60 region on rebounds, near-term.
