In the Asian session on Thursday (May 4), the latest price of GBP/USD was 1.2581, and the opening price was 1.2562. Institutional Analysis on Wednesday raised its forecast for the Bank of England‘s peak interest rate to 4.75% from 4.5%, citing a surprise rise in recent UK growth, inflation and labor market data.
Analysts Sonali Punhani and Samuel Adams Williams said we now expect two more rate hikes by the BoE in May and June, each by 25 basis points; A mild recession later this year and weak growth in 2024, but recent stronger-than-expected inflation data will force the Bank of England to continue raising interest rates in the short term. Analysts added that the worst of the stress in the global banking sector may be over.
On the GBP/USD upside, 1.2550 (static level) ranks as first resistance ahead of 1.2570 (end of latest uptrend, midpoint of regression channel) and 1.2600 (psychological level, static level).
