GBP/USD remains relatively weak in the 1.24 area. Scotiabank economists analyze the pair’s outlook.
Markets are attentive to the BoE decision
UK markets have a lot to deal with this week: CPI on Wednesday and the BoE policy decision on Thursday. A moderate rate hike by the ECB would put pressure on the Pound and, at the margin, increase pressure on prices.
The Pound is weak, but intraday price action is now showing some signs of relative strength through an out-of-range bullish session on the six-hour chart.
If the Pound can maintain the gains above 1.24, a deeper compression towards the 1.2450 resistance could develop. A clear move above this point is needed to indicate further GBP strength.
Support is seen at ..2375.
Source: Fx Street
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