Pressure building on BOE is good for the FTSE but not so clever for the Pound

An update here yesterday noted an alarming acceleration in the number of UK firms in critical financial stress and that was adding pressure on the BOE to act aggressively next week. As things stand there is a good argument for more than a 0.25% rate cut next Thursday. However, that remains the consensus for the time being. Perhaps the FTSE 100 sniffs the prospect of more than 0.25% and that might help explain the records set yesterday? Be that as it may, such a move would not be good news for the Pound, especially versus the dollar. Leaving aside the fundamentals for the moment, the GBP/USD chart does not look very supportive at the moment and only a push back above 1.2510 is likely to alter that. Downside support is in place at 1.2354. The GBP/USD closed in the US last night at 1.2419. The range seen so far today has been covered by 1.2408 and 1.2431. It is right now at 1.2420