Aila Mihr, Analyst at Danske Bank, noted Cable needs to surpass 1.4345 to allow further gains.
“Momentum in GBP rally has eased since GBP/USD broke above 1.4245 on Friday. As such, the rally seen last week seems to be mainly technical driven and in the short term, it will require a break of 1.4345 in GBP/USD to maintain momentum in GBP”.
“This week’s data prints out of the UK are likely to support the case for a BoE hike in May as we look for higher wage growth and higher core inflation. However, the market is already pricing in an 80% probability of a bank rate hike in May, and we still think it’s a bit too early to increase expectations”.