Pound Sterling Price News and Forecast: GBP/USD bulls and bears battle it out between 1.3150/1.3250

FXStreet Team FXStreet

GBP/USD: Pound set to weaken as markets expecting too much from the BoE – CIBC

The pound will likely weaken in the near future as market participants expect too much from the Bank of England (BoE) according to analysts at CIBC. They forecast GBP/USD at 1.31 by the end of Q1 and at 1.29 by Q2 of next year.

Key Quotes:

“The labour market data met the conditions for tightening, and the Bank felt it prudent to hike, in large part in order to preclude inflationary pressures from becoming deanchored. The BoE was clearly spooked by outsized and broadening CPI pressures.

GBP/USD Price Analysis: Bulls and bears battle it out between 1.3150/1.3250

GBP/USD, for the most part, is consolidating. There is little prospect of a breakout, one way or another until the parameters of the sideways price action are broken. The following illustrates the outlook from a long=term to a nearer-term perspective.

The price is stalling in support and there is the potential for it to climb back to a 50% mean reversion level in the coming sessions if the bulls commit.

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