The cable muted after Tuesday's strong gains, hovering around 100Dema. Ahead of the BoE interest rate decision, the cable was trading with mild losses at the Asian session.
The services PMI missed expert's expectations, disappointed the pound bulls. The Business Activity Index indicated a rise in services output in May for 29 successive months, posting 56.5. The decline in the Index from 59.5 in April was the steepest since August 2011, but it remained above its long-term trend level of 55.2
Today, we expect the BoE to maintain its interest rates.
Technical analysis:The cable has been trading in a downward bearish channel in the H1 and four-hour charts. In the one-hour chart, the cable managed to come out of the bearish channel, but not in the four-hour chart. The intraday support is found at 1.5300 and 1.5280. Intraday resistance is seen at 1.5350 and 1.5375. The buying opportunity is available above 1.5390 with targets at 1.5430/1.5440. Real bullish strength is expected above 1.5450 towards 1.5490. For bears, selling opportunity will arise below 1.5280 with an initial target at 1.5250. Safe selling will emerge below 1.5250 towards 1.5220, 1.5200, and 1.5180. The selling pressure will be tightening below 1.5170 towards 1.5100. Today, in case bulls manage to close above 1.5500, we can see 1.5700 in a day or two. In the hourly chart, the RSI has been consolidating in a tight range. We expect big moves in coming days.