GBP/USD: Last Week’s Rally Mainly Technical Driven; Break Of 1.4345 Key S/T – Danske

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The pound advances higher and higher and flirts with the post-Brexit highs. What’s next?

Here is their view, courtesy of eFXdata:

Danske Research discusses GBP outlook, and notes that the rally seen last week in GBP/USD seems to be mainly technical driven and in the short term, it will require a clear break of 1.4345 in to maintain momentum. 

“This week’s data prints out of the UK are likely to support the case for a BoE hike in May as we look for higher wage growth and higher core inflation.

However, the market is already pricing in an 80% probability of a bank rate hike in May, and we still think it’s a bit too early to increase expectations,” Danske argues.

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