GBP/USD-1.2500 gives way after Pound sets negative daily close

The failure of the GBP/USD to make a convincing recovery above its 200 day moving average was the subject of the final update here yesterday. The move back below 1.2546 then extended into the US close, as the Pound fell to test the 1.25 handle, before later ending the US session at 1.2509. It has fallen further since, with a low so far today set at 1.2484. The close below the 200 day moving average (now at 1.2545) was one driver for that and the further rebound in the USD/JPY was another. Once again the reader is reminded of the reason for immediate weakness in the Pound and that is all about the BOE policy decision tomorrow. The EUR/USD is above 0.8600 this morning for the same reason and that has been another driver for the further falls in the GBP/USD today. The GBP/USD is currently trading at 1.2487