GBP/USD is down to session lows of 1.3112 currently
The pound is getting a hard reality check on the day as markets come to terms with the fact that the UK will be officially leaving the EU now. Trade negotiations will be the key factor in Brexit moving forward and the early signs aren't promising.
As mentioned last week, cable may yet struggle in a move back above 1.3150-00 unless we really do see some improvement in UK economic data. It is too soon to tell on that front and as such, BOE pricing shifts may have to wait and any pound rally will be kept at bay.
Put that with Brexit focus returning to the picture, there are downside risks for pound traders to take note of in the weeks/months ahead.
For cable, price is now slipping past the 38.2 retracement of the post-BOE rally and is looking to test the 1.3100 handle next. Further support is then seen around 1.3075-85 from the key hourly moving averages and that will be a real test of buyers' resolve this week.
In the bigger picture:
Cable is falling back into the range of 1.2950 to 1.3200 with downside support also seemingly limited by the trendline support at around 1.3000 currently.