There Are Two Scenarios For The GBP At This Stage

The hike of the interest rate of the Bank of England and the monetary policy report not only did not have a positive influence on the GBP, which, instead of rallying, it fell compared to the USD with almost 110 pips and has almost reached the support zone around 1.3020 – 1.2990>>>  as I thought it would last week.

At the same time the RSI divergence on the D1 time frame remains at this stage.

I think that now there are two scenarios for further development:

The first scenario is for a test of the local low at 1.2957, a formation of a double bottom and then a trend reversal with a target at 1.3570.

The other scenario is for a breakout below the local low and a continuation of the depreciation toward 1.2750 – 1.2700.