Bank of England’s (BoE) expectations (as seen through SONIA futures) and the GBP took a dip after the miss in UK CPI on Wednesday. GBP/USD may move downward if this view persist, economists at OCBC Bank report.

1.3850 to cap the cable  

“The GBP may struggle should the UK CPI miss turn into a catalyst for the market to turn more sane over expected BoE rate hikes.”

“1.3850 should cap the GBP/USD for now.” 

“First downside targets at 1.3700/10.”