The pound/dollar lost its momentum after weak UK construction activity data came out. Then the fall gathered pace after positive stats came out of the US and Yellen made a speech.
One thing for sure isn’t clear: why is everyone throwing pounds in before the ECB meeting when everyone expects a further relaxation of monetary policy? I understand that the BoE is in no rush to put up its rates, but as I see it, the pound was being sold too much yesterday.
The pound/dollar fell to the D3. Today trader attention is on the ECB. There are no forecasts from me for today and tomorrow; I do not see the point in making them. The fundamental news is set to smash the technical and fundamental signals.
The break was not cancelled. On the news, the GBP/USD dropped to 1.4894. The pair has currently reached the support. It’ll be a break or a rebound and this will become clear after the NFP is out on Friday.
No comment until Friday.