On the H4, with price moving below the ichimoku cloud , we have a bearish bias that price will drop to the pivot at 1.2109 in line with the swing low support, 78.6% fibonacci projection and 78.6% fibonacci retracement . Once there is downside confirmation, we would expect bearish momentum to carry price to intermediate support at 1.2063 where the swing low support, -27.2% fibonacci expansion , 161.8% fibonacci extension and 78.6% fibonacci retracement are. Should price break intermediate support structure, we would expect price to drop to the 1st support at 1.1952 where the swing low support and 100% fibonacci projection are.
Alternatively, price may rise rise to the 1st resistance at 1.2201 where the overlap resistance is.
With inflation at 9.1 percent, the BoE raised the UK interest rate to 1.25 percent. Retail sales in the UK decreased by 4.7% year over year as a result of rising costs having an impact on consumer spending. This gives us a medium bearish bias towards the British Pound.