The pound holds on to its latest gains in the wake of hawkish BoE comments. A sharp drop below 0.8810 has invalidated the previous bounce, putting the bulls on the defensive. The daily support of 0.8770 coincides with the base of the breakout rally at the end of January, making it the bulls’ last stronghold. A bearish breakout could pave the way for a reversal below 0.8730. The RSI’s oversold condition attracted some bids and 0.8830 is the first hurdle. 0.8890 is the obstacle to clear before a recovery could materialise.
