BoE: A “dovish hike” a la ECB would pressure the GBP – Scotiabank
|GBP/USD remains relatively soft in the low 1.24 area. Economists at Scotiabank analyze the pair’s outlook.
Markets eye BoE decision
UK markets have a fair bit to contend with this week – CPI on Wednesday and the BoE policy decision on Thursday. A ‘dovish hike’ a la ECB would pressure the GBP and, at the margin, add to price pressures.
The GBP is soft but intraday price action is – right now – showing some signs of relative strength via a bullish outside range session on the six-hour chart.
If the GBP can sustain gains through 1.24, a deeper squeeze may develop towards 1.2450 resistance. A clear move above this point is needed to indicate more GBP strength.
Support is 1.2375.
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