The sterling is volatile in the middle of the week. The British currency has been plunging lately facing pressure from better US dollar demand and low economic figures in the UK. Specifically, the latter indicates slower economic growth which probably related to the longlasting divorce process.
As the statistics show, the sterling touched a 2-week bottom vs the greenback near $1.2925, which in fact became the line of the support. As a result, it is rebounding on Wednesday reaching some $1.2962. However, the downward movement is possible especially in light of the upcoming BOE meeting to take place on Thursday. Considering the technical aspect, it seems that the local pressure on the sterling may persist and the currency will have to show that it regain gains above $1.30.
With steadily uncertain Brexit deadline of which is coming, UK Central Bank is likely to be careful and take a waiting mode rather than make broad statements and summaries regarding the economic outlook and monetary policy. However, the market is curious whether slack economic reports, including PMI, affect BOE's outlook or not. In particular, the sterling may keep falling if BOE points out external economic and Brexit risks.
The sterling to US dollar rate needs to survive above 100-day moving average at 1.29, which in fact restrains bears' pressure. At the same time, this situation partly depends on the US dollar demand for which stays strong.