BoE set to keep rates steady at 4.75%. The GBP/USD pair was last seen at 1.2651, OCBC’s FX analysts Frances Cheung and Christopher Wong note.

Near term consolidation likely

“The last MPC meeting (November) saw BoE putting an emphasis on making sure inflation stays close to target. This reinforces the view for a gradual approach to removing restraint. GBP fell amid USD strength post-FOMC while UK CPI was modestly softer than expected.”

“Mild bullish momentum on daily chart is fading but decline in RSI slowed. Consolidation likely. Support at 1.2570 (76.4% fibo), 1.2490 levels. Resistance at 1.2670 (21 DMA), 1.2730 (61.8% fibo retracement of 2024 low to high), 1.2830 levels (50, 200 DMAs).”