The pound tumbled after the BoE expressed concerns of a prolonged recession. On the daily chart, the near 3-month long consolidation might have come to an end after a bullish candle above 0.8650. The surge is likely to be caused by short-covering from traders on the wrong side. The price has hit resistance at 0.8770 which lies in the supply zone extending to last month’s peak at 0.8830. A bullish breakout would resume the rally in the medium-term. In the meantime, 0.8620 is a key support to keep the bounce intact.
