Cable – Pullback Stabilizes at Key Support Levels Ahead of Fed and BOE Rate Decisions

Cable rebounded from a fresh three-week low at 1.3415, which followed a sharp 1.2% drop on Tuesday triggered by weaker-than-expected UK inflation data for May. A softer U.S. dollar also supported the recovery on Wednesday, as markets turned their attention to today’s Fed decision and Thursday’s Bank of England policy announcement.

Both central banks are widely expected to leave interest rates unchanged, with investor focus shifting to forward guidance and projections for the remainder of the year.

The near-term technical outlook weakened after Tuesday’s close below both the 10- and 20-day moving averages, along with a dip below key support at 1.3444 (the 38.2% Fibonacci retracement of the 1.3195–1.3632 rally and the base of the recent range). A sustained close below this level would confirm a bearish signal and pave the way for a deeper pullback.

Conversely, a recovery above the 1.3500/15 area (psychological level / 20DMA / 50% retracement of 1.3632–1.3415) is needed to ease downside pressure and shift focus back toward the upside, targeting 1.3550, 1.3595, and 1.3616.

Res: 1.3515; 1.3550; 1.3595; 1.3616
Sup: 1.3415; 1.3400; 1.3377; 1.3321