Sterling stays within touching distance of 1.23 against the Dollar. The GBP/USD pair could test resistance at 1.2345, in the view of analysts at Société Générale. 

50 bps priced in for Thursday

“The high of 1.2345 last week is first resistance if equities come through US CPI, Fed, ECB and BoE unscathed. The 30-day correlation with the S&P is 0.6.”

“A dovish split on the MPC at the meeting on Thursday could also backfire for Sterling via higher EUR/GBP. Some members could prefer 75 bps, others 50 bps, others 25 bps and some no change. We are in line with consensus for 50 bps to 3.50%.”