GBP/USD steadies. Economists at Scotiabank analyze the pair’s outlook.
Steady downside pressure may be easing
BoE Governor Bailey said it was ‘too early to talk about a rate cut’ after BoE economist Peel did just that on Tuesday (it was not ‘unreasonable’ to suggest market prices for a rate cut by August next year).
Steady downside pressure on the GBP may be easing on the short-term chart.
Cable losses are moderating and minor gains off the early session low are testing trend resistance (1.2265) of the Monday high. GBP gains through here could extend to the low 1.23 area.
Resistance is 1.2310/1.2320 and 1.2370. Support is 1.2230/1.2240.
