GBP/USD could still trade on the back foot amid BoE nearing end of tightening cycle – OCBC
|GBP/USD oscillates just below 1.24. Economists at OCBC Bank analyze the pair’s outlook.
25 bps hike likely
Risks skewed to the downside but at the same time, we observed a potential falling wedge, which may point to a bullish reversal at some point. We watch price action for confirmation.
We still expect a 25 bps hike at the upcoming MPC as wage growth remains red hot and core CPI remains elevated. That said, GBP could still trade on the back foot amid the BoE nearing the end of tightening cycle while stagflation concerns returned.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.