Sterling heavy ahead of BOE decision

Cable is down 0.7% on the day to 1.2419 with the pound being the laggard in the major currencies space. A softer UK construction PMI here is not helping with the mood, with construction activity contracting for the first time in almost a year. Looking at the near-term chart:

The pair has inched back just under both its key hourly moving averages, giving sellers a slight edge ahead of the BOE. The key technical region around 1.2428-37 is one to watch now. Keep below and sellers retain near-term control but break back above, and it is buyers who will regain the near-term advantage.

As for the BOE decision in itself, it should largely be a non-event if Bailey & co. play their cards right. Traders are pricing in ~94% odds of a rate cut already with the next one anticipated for May. From earlier: BOE policy decision in focus today

This article was written by Justin Low at www.forexlive.com.