The Pound repeatedly bounced off its weekly lows, but its intraday support levels were gradually moving lower. In terms of GBP/USD, today's Cable low is at 1.2088, compared to 1.2132 on Tuesday and 1.2142 on Monday. EUR/GBP is also trying to hold above 0.87 after climbing this hill from a 0.8650 area where it stayed at last week's close. A significant drop of the British currency took place on October 12, which was a response to U.S. inflation data that reignited Fed fund rate hike concerns. A combination of persistent price pressure and a tight labour market lead to increasingly higher U.S. 10-year Treasury bond yields benchmark, which is approaching its 5% record for decades, leading to extra demand for the Greenback.

Parallel to this, the latest data on industrial production from the U.K. showed a 0.7% monthly decline, while analysts predicted only a slight 0.2% shortfall. On Tuesday, October 17, the average earnings (+bonus) index surplus was 8.1% only compared to 8.5% a month ago, supporting the view that the Bank of England may be less hawkish than the U.S. Fed. This supposes a further relative weakness of the GBP and the USD strength.

Getting rid of the excess Pounds is seemingly a wise strategy, with my current trading plans of selling GBP/USD at any upticks towards 1.2170 minor downtrend line, with a possible option of adding more near 1.2200-1.2225 resistance, in case if the Pound will touch that hard-to-reach price zone. A stop loss area could be placed somewhere above 1.2250, as I personally feel it.