GBP/USD should stay bid and perhaps push up to resistance in the 1.2850/1.2900 area

Economists at ING analyze how the Bank of England (BoE) meeting could impact the Pound Sterling (GBP).

Unchanged forward guidance can help the Pound

We do not expect the BoE to change its forward guidance today. And assuming the MPC voting pattern remains the same as February, 2 (hike), 6 (unchanged), 1 (cut), GBP/USD should stay bid and perhaps push up to resistance in the 1.2850/1.2900 area. We doubt one of the votes for a hike shifting to an unchanged position has to hit the Pound.

The above scenario suggests that EUR/GBP could take another look at major support at 0.8500. However, we retain a view that this should be the medium-term base and that EUR/GBP will gently rise through the year once the BoE starts to elaborate on its easing plans over the coming months.

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