After Thursday’s fall the Cable has entered a period of stagnation, which could just be a calm before the storm, with this week’s Fed and BoE meetings due. Consequently, no significant changes are likely to occur ahead of those meetings, meaning the GBP/USD pair is likely to remain relatively unchanged and hold around the monthly S1 of 1.2758. Risks remain skewed to the downside, as that door got open by the election results in the UK, with the Pound now being exposed to the 1.25 area. Technical indicators suggest the Sterling is to weaken against the Buck today, but the 1.27 major level is expected to hold for the time being. In case this psychological support is breached, the next target will be the monthly S2 at 1.2624
