The British pound is consolidating within the 1.3253–1.3364 range in anticipation of tomorrow's interest rate cut by the Bank of England. Has this rate cut already been priced in by the market? No. Investors attempted to do so when the price broke through the 1.3253 support level and even consolidated below it — but were interrupted by Friday's U.S. NonFarm Payrolls report.
We are now expecting a renewed consolidation below the 1.3253 support level and a continued decline toward 1.3090.
On the four-hour chart, the price has consolidated above the MACD line, which currently creates preconditions for growth.
However, the nature of the consolidation is bringing both the price and the indicator line to the same level. Therefore, in the current situation, we are simply waiting for tomorrow's Bank of England meeting.
