There is little in the way of technical support now until closer to the 1.2000 level which leaves the Pound vulnerable to further weakness after today’s MPC meeting.

Even if the BoE delivers one final hike today, any relief rally would likely prove short-lived as we expect the BoE’s updated guidance to signal that it is close to or at the end of their hiking cycle and they now favour leaving rates at higher levels for longer in order to bring inflation back to target.