Pound Sterling Faces Pressure with BoE Policy Expectations

The Pound Sterling (GBP) is losing value, primarily due to investors adopting a more risk-averse stance. This shift in investor sentiment is due to growing concerns over potential developments in Middle East tensions, in anticipation of the Bank of England's (BoE) upcoming interest rate decision.

The GBP/USD currency pair is under selling pressure and this trend is likely to continue as the BoE is likely to maintain its current interest rate of 5.25%. This decision will result in continued policy divergence between the BoE and the Federal Reserve (Fed).

The rationale behind this expectation of a stable monetary policy from the BoE is rooted in growing concerns about the United Kingdom's economy falling deeper into recession. Inflation remains significantly below the target rate of 2%, and there is a substantial risk of persistent price pressures, particularly given the potential for escalating energy prices due to the ongoing conflict in the Middle East.

GBPUSD is touching the last support at 1.2070 waiting for more developments to find direction. The pair is bearish, and more selloffs can come with the strength of the dollar and the pound's weakness.

Resistance 3	Resistance 2	Resistance 1	Support 1	Support 2	Support 3
1.2450	1.2300	1.2200	1.2000	1.1900	1.1800