The Bank of England (BoE) hiked key rates by 25 bps but showed hesitance in its future tightening plans, dampening the pound outlook. Analysts at OCBC bank expect cable to remain under pressure while below the 1.32 level.

Less hawkish BoE and the widening US-UK yield differentials points to further downside for GBP

“The relatively less hawkish BoE and the widening US-UK yield differentials (both on the front and back-end) points to further downside for the GBP.”

“So long as the pair is capped under the 1.32 resistance, the bias is still on the negative.”