The British Pound trades pretty much flat against the greenback below the 1.5400 level, as the market waits for the Bank of England decision and the Inflation Report. An early spike beyond the key level was quickly reverted, indicating high expectations ahead of the news.
The UK released its Halifax House Prices, which were 2.8% higher in the three months to October, than in the previous three months. The annual rate increased from 8.6% in September to 9.7%
The technical picture is neutral-to bearish ahead of the BOE, as the 4 hours chart shows that the price develops below a bearish 20 SMA, whilst the technical indicators remain flat in negative territory. Nevertheless, the upcoming moves depend solely on the Central Bank announcement, and a hawkish stance may well fuel the pair beyond 1.5410, with the next intraday resistances at 1.5455 and 1.5500.
A negative surprise on the other hand, can see the pair breaking below the weekly low at 1.5358 and lead to a quick decline towards 1.5300, whilst further declines below this last will likely target the 1.5250 price zone.
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