Following Monday's sharp upsurge, GBP/USD has gone into a consolidation phase below 1.2200. Still, economists at ING see upside despite potential hold by the Bank of England.

Wage growth might have finally peaked

“On the data front, data released today show clear signs that wage growth might have finally peaked. The 3M/3M annualised rate of growth has slowed noticeably over recent months. This will be welcome news for the BoE and does question whether the Bank will indeed hike by 25 bps next week amid the SVB fallout.”

“Even if the BoE decides to hold, this should not prevent Cable from testing the January 1.2450 highs if the Fed pivots to the dovish side and risk sentiment bounces back.”