Sterling struggles as the market bets on a cautious 25 bp rate hike by the BoE at its next meeting. Sentiment remains downbeat and the bears may see rebounds as opportunities to sell. The latest one came to a halt in the supply area (1.2100) which coincides with the 30-day moving average. A bullish breakout could trigger momentum buying and send the pair to the daily resistance at 1.2300. A pullback may bring the price to 1.1920, the first level to gauge buyers’ resolve. A deeper correction would make the pound revisit 1.1770.
