 Hello and welcome to CMC Markets on Tuesday the 26th of July in this quick market update on this morning's Sharp sell-off in the value of the pound So what did the pound sell off this morning? Well, it was on the back of comments made by Martin wheel MPC policymaker and Sent the pound as we can see from this chart back to levels last seen just over a week ago below 131 Now mr. Wheel leaves the MPC next month and he stated that he changed his mind about the prospects for further stimulus From his views a week ago when he urged a wait-and-see approach with respect to further stimulus now What appears to have prompted him to change his mind is last week's very weak flash PMI numbers and These flash PMI numbers are slightly contrary to a Bank of England survey Which did appear to suggest that conditions post-Brexit? Weren't as bad as originally feared now while mr. Wheel appears to have changed his mind His influence on the rest of the committee is likely to be limited now Why is that well simply speaking? He has voted against the consensus on the MPC a number of times over the past few years He's voted for rate hikes on us on a number of occasions and he's generally been in the minority When he's done that so he's quicker change. He's quick change of mind while significant He will join other policy new policymaker Gertian of Liga in Potentially voting for either a rate cut or further stimulus When the Bank of England meet next week for their latest policy meeting as well as the latest inflation report We still need to see at least another three policy makers vote for further stimulus To get a decision on that basis Now Kristen Forbes who's another external policymaker has urged for a wait and see approach So I think while the odds of a shift in policy have moved ever so slightly towards A an easing bias There's certainly not a done deal in the context of what we may get next week So we'll also get The latest PMI reports for July now These could well get revised higher last week We got the flash numbers for the first time ever and I think potentially they could have actually done more harm than good given They were taken in the weeks post the Brexit vote when we get the final figures at the beginning of next week We could well We could well get a significant pick up in activity Which could take some of I think what would we could what I would term the hysteria away from the actual decision Next week the Bank of England will also have to weigh up the effects on UK banks Given this week's decision by RBS to warn that they may have to start charging business customers for credit balances Mr. Carney has already Bank of England Governor Mark Carney has already warned about The potential negative effects that too low rates could have not only on bank balance sheets But also on the ability for UK banks to actually conduct their everyday business There could be no shore away to undermine at the UK banking system to start talking about charging business customers for holding Credit balances. So looking at the current cable chart We can see here that we've got a nice trend line support coming in from the lows at 128 Currently comes in around about 130 50 now. This is a four hour chart here And if we actually take it out slightly further to a daily chart We can see that there's certainly potential for a little bit of what I would call a little bit of consolidation But what I wouldn't want to see is a significant move below 130 50 because that could ultimately Be very negative for the pound against the dollar But what's quite interesting about this chart is how it's actually replicated in the similar chart on euro sterling again Here we can see this chart here We can draw a similar trend line down from the highs that we saw at the beginning of July And again, we've managed to rebuff That level around about 84 20 and we've also got a potential tweezer potential tweezer top So I think we really need to keep an eye on this 84 20 level On the top side from resistance here and also the 130 50 level on the cable chart From the trend line at 128 keep keep an eye on those particular levels And potentially if they hold we could see further sterling gains And potentially further euro and us dollar weakness