GBP/USD could be poised for a squeeze higher – SocGen

In view of Strategist Kit Juckes at Societe Generale, GBP/USD could attempt a rebound in light of the forecasted ‘steady’ BoE today.

Key Quotes

“Is it time for a more meaningful Cable rally?”.

“Better data surely keep the MPC on hold this month and upward revisions to inflation and growth forecasts seem inevitable”.

“So are warnings of the hit that is coming to growth in future but the gap between what the rates market is now pricing and where the pound is currently trading is already wider and may not be able to get any wider”.

“A weaker dollar provides fertile ground for a short-covering in GBP/USD into a 1.25-1.30 range. It's worth a quick mention that we get the High Court ruloing at 10 a.m over whether triggering Article 50 needs parliamentary support but whatever is decided, the issue won't be resolved. It just moves on to the next court...”.