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Feb 02 - 03:55 PM

GBP/USD - Slides After BoE 50Bp Hike, As Market Adjusts Rate View Lower

By Paul Spirgel  —  Feb 02 - 01:35 PM
  • GBP$ ending NY near session low, -1.07% at 1.2241; NorAm range 1.2397-1.2232

  • Pair hit post-BoE +50bp, stmt removed pledge to hike forcefully; seen dovish

  • IRPR on Eikon sees 60% odds for +25 on Mar 23, +32 bp by Jun 22 MPC meeting

  • Less forceful BoE leaves sterling in the lurch nL1N34I1J7

  • Dovish leans by Fed, BoE, ECB boosts USD as global yields slide

  • Close sub-21-DMA 1.2274 puts 30-DMA 1.2205, daily cloud top 1.2145 in focus

  • 1.2145 also 50% Fib of 1.1842-1.2448, cls below shifts momentum to GBP bears

  • Res at 1.2289 falling 10-HMA, 1.2361 10-DMA, 1.2401 Thursday high

  • Worth noting GBP failed 9/12 recent attempts abv 1.24, bulls capitulating

  • EUR/GBP +0.4% to 0.8916, Thurs range 0.8916-0.8879; ECB seen more hawkish than BoE

Source:
Refinitiv IFR Research/Market Commentary

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