The pound treads water as the BoE warns of a recession after raising rates by 50 bps. The rebound came to a halt at 1.2300, a major resistance from the daily chart. A bearish RSI divergence already showed a slowdown in the rally. A follow-up break under 1.2150 has further weighed on short-term optimism. 1.2070 is buyers’ stronghold and its breakout could trigger a liquidation towards 1.1900. 1.2200 is the closest resistance and the bulls will need to clear 1.2300 before they could hope for the rally to resume.