On Monday (Oct 31), / fell, temporarily trading at 1.1593, down 0.13%.
Unicredit research said the peak of the current rate hike cycle could be lower than expected, which could limit sterling’s potential appreciation.
The UK forward curve has lowered its interest rate forecast to peak below 5.0 per cent, after hitting a high of 6.25 per cent at the end of September following the government’s tax-cutting mini-budget;
However, unicredit expects a lower peak, with boe rates expected to reach 4.00% by the end of the year, down from its previous forecast of 4.50%, and hold steady throughout 2023, which could slow the pace of further recovery next year.
GBP/USD Additional losses may occur if line pairs fall below this level and start using them as resistors.
Ideally, in this scenario, the RSI on the four-hour chart would fall below 50 to confirm a bear market shift.
