Sterling regains traction but awaits more signals from the outcome of BoE policy meeting

Cable stands at the front foot for the second day, correcting a 2% drop of past two weeks. The bounce was signaled by oversold conditions and sparked by fresh risk demand, with 23.6% of 1.3748/1.3357 bear-leg being reversed so far.
Improving studies on 4-hr chart support recovery, but daily techs warn of possible stall as strong bearish momentum persists and moving averages are still in negative setup.
Fresh bulls need a sustained break above 1.3500 resistance zone (daily cloud top / Fibo 38.2% of 1.3748/1.3357) to generate stronger bullish signal and open way for further recovery.
Investors focus BoE policy meeting on Thursday, to get fresh direction signals. Widely expected quarter-point increase to 0.5% has been already priced in and markets look for decision beyond expected move.
The pound may receive fresh boost from so called ‘hawkish hike’ in which BoE would signal an additional rate hikes in March and May.
Conversely, a ‘dovish hike’ would weaken the sentiment and push the pound lower.

Res: 1.3450; 1.3498; 1.3507; 1.3553
Sup: 1.3420; 1.3385; 1.3357; 1.3300