GBP/USD drops to 1.2760- is a BOE rate cut now priced in?

As the pound faces yet more selling pressure this morning, the GBP/USD has just now hit a fresh session low at 1.2760. The movie lower in the GBP/USD has delivered more upside for the EUR/GBP, as that rises above 0.8450 a short while ago. The prospect of the Bank of England cutting the base rate a little later this morning is what is driving the falls in the Pound. That said, there are still doubts as to whether they will do that, or not. So, on the assumption that a 0.25% reduction in the base rate happens, does that mean it is priced in at the current levels? Well, it could be and certainly one can make a case for that. Of course if no cut is forthcoming the Pound is going to bounce and that bounce could quite sharp too, as many short-term traders have sold the currency this morning, on the expectation of a cut- we shall just have to see. Meantime, the GBP/USD has now extended a break below its 50 day moving average (in place right now at 1.2787). The GBP/USD is currently trading at 1.2763