GBP/USD tests 1.3100 ahead of BoE event

• Cable remains on the defensive near the 1.3100 handle.
• The pair navigates in fresh YTD lows in the 1.3100 area.
• The BoE is expected to keep its monetary stance on hold today.

The Sterling remains under heavy pressure so far this week, now sending GBP/USD to test fresh 2018 lows in the 1.3100 neighbourhood.

GBP/USD now looks to BoE

Cable is down for the fourth consecutive session so far today, trading in the vicinity of 1.3100 the figure, levels last seen in November 2017, and always amidst a stronger greenback, uncertainty around UK’s PM May government and renewed Brexit concerns.

Spot remains unable to gather some meaningful traction despite yesterday’s positive vote on the EU withdrawal bill, a tepid win for PM May against the stagnant negotiations on the Brexit front.

Later in the day, the Bank of England is seen keeping its monetary status quo unchanged at its meeting, while the next rate hike has been postponed in light of the poor results from the UK fundamentals as of late.

GBP/USD levels to consider

As of writing, the pair is retreating 0.46% at 1.3112 and a break below 1.3102 (2018 low Jun.21) would expose 1.3039 (monthly low Nov.3 2017) and finally 1.3027 (monthly low Oct.6 2017). On the upside, the next resistance emerges at 1.3205 (low May 29) seconded by 1.3279 (10-day sma) and then 1.3310 (21-day sma).