GBP/USD is little changed in mid-1.22s. This figure stands in the way of the pair regaining the 1.23 mark, which would improve the pound’s outlook, economists at Scotiabank report.

UK markets look ahead to inflation

“A close above 1.23 on the day, which is key resistance past the mid-figure area, would firm up the GBP’s ambitions while the 1.22 big figure area stands as support followed by ~1.2175 (Friday’s low).”

“The GBP should follow the broad dollar mood until Wednesday’s inflation print with the UK’s weak macroeconomic backdrop and likely overpriced BoE expectations (~190bps by year-end) acting as headwinds.”