GBP is under broad pressure as dovish weekend comments from Bank of England’s monetary policy committee ratchets rate cut bets. Jan. 31 BoE rate cut odds jump to 50-50 vs. a 0% chance of a move just a week ago. GBP/USD has pierced key support from the Ichimoku Cloud Top and pressures a move to key swing low at 1.2902; below here would bolster negative risks to the 50% retrace at 1.2736.
Short Sterling 20 Futures rally in response. 3 day surge against the 200d @ 99.26 breaks the 99.37 range high as well as piercing the 61.8% fib @ 99.41. Close above range high would complete a basing process and potentially risk a revisit to the 99.55 high.