Market managed to sustain the drop movement as Pound fell below support 1.3120 where we advised that below this level downtrend wave toward 1.2500 wil sustain.

  The pound caught a fresh bid tone in recent dealings, lending support to the ongoing recovery in GBP/USD from fresh thirty-one year lows.

  According to Mark Carney (the Governor of the Bank of England) the regulator may lower the rate this summer. After that news the pound weakened and lost about 150 pips. The next meeting of the Central Bank is in two weeks. Most likely the regulator will pave the way for the additional incentives at the July meeting and will implement them in August.

  Market may head for trading zone over short-run between 1.3200 – 1.3600 before resume drop toward 1.2500.

  The sterling is intensifying its losses at the beginning of the week, now sending GBP/USD to trade around the 1.3400 handle.