The GBP/USD pair last week recorded the first daily close below the 200-day moving average since March. Société Générale economists analyze the pair’s outlook ahead of Thursday’s BoE meeting.
The possibility of a final 25 basis point hike by the BoE and a subsequent pause could keep the British Pound at a disadvantage against the US Dollar
The possibility of a final 25 basis point hike by the Bank of England and a subsequent pause could, in theory, keep the Pound at a disadvantage against the Dollar.
The last break below the 200-day SMA in March turned out to be a turning point rather than a sell signal, but this time the UK labor market is easing and a sharp drop in employment means the bar for a bounce in GBP/USD is higher than it was six months ago.
Source: Fx Street
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