Sterling reached a high of £1.2428 on Monday but has since given back the gains

Taking a look at the pound vs the dollar after comments from Andrew Bailey yesterday and Pill today. Pill stated that the Bank of England does not need to add anymore more rate hikes to tame inflation. Sterling reached a high of £1.2428 on Monday but has since given back the gains as it is now trading at around £1.2264 against the dollar. Applying the moving averages to the chart, we can see that the forex pair tried finding some support at £1.2241 but then got rejected along the 20-day MA in an attempt to move higher. The support now sits along the 50-day MA, which reads £1.2247. A break below the 50-day MA as well as £1.2241, would indicate that we could see a further move lower towards the 100-day MA. Which currently reads £1.2197. The short-term bias has now shifted bearish in Minipip’s opinion, and this outlook may only change if the pair moves and closes above £1.2308. The technical indicators align with this view as the MACD is negative and so is the RSI as it reads 43.