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Bank of England expected to hold rates this week and the GBP/USD knows it

The Pound came under further pressure into the close last week as the dollar continued to hold gains ahead of the weekend. The GBP/USD closed at 1.2736, after falling to a low at 1.2725 after the European close. This was all about the dollar dynamic and not much to do with the Pound. Of course that could change come the close this Friday and we do have both sides of the coin to consider this week too. That is because we have the Fed and the BOE making monetary policy decisions on consecutive days. There will be plenty to add on that dynamic and how it might bring the Pound front and centre stage, as this week unfolds. The Bank of England is not going to change rates this week, especially given the tax cuts delivered the week before by the Chancellor. That should be supportive, but the Fed is very likely to do the same too. The nearest technical support levels of note are in place 1.2711 (21 day moving average) and 1.2687 (50 day moving average). Resistance remains at 1.2823 and 1.2824 from the interim double top set last week. Overnight the GBP/USD has traded a narrow range covered by 1.2726 to 1.2742. It is just now trading at 1.2736

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