Cable still pressured to the downside after break below 1.2400 yesterday
The low today hit 1.2311, near the support region of 1.2300-10 as the pound stays pressured upon a break under the 1.2400 handle since trading yesterday.
Sellers continue to retain a near-term bearish bias with the push under 1.2400 solidifying the downside momentum ahead of the BOE policy decision today.
The central bank is expected to keep monetary policy unchanged in a relative non-event, but still just be mindful of any potential surprises of additional stimulus measures.
The next relevant move by the BOE is likely to come on the QE front, where they may increase the size of asset purchases. At the 26 March meeting, all they did was just reaffirm their commitment to doing so if necessary.
As for cable, the technical picture continues to side with sellers and a break under the support region of 1.2300-10 will open up a potential test towards the 21 April low @ 1.2248.
A key break under that level will trigger more alarm bells on the way down towards daily support around the early April lows @ 1.2166-06.
