GBP/USD climbs above 1.23. Economists at ING expect the pair to enjoy further gains toward the key 1.2426 (December high) and 1.2500 resistances.

Bailey helping the Pound

“Bank of England Governor Andrew Bailey sounded relatively hawkish in his remarks yesterday. While saying that rates should not be taken to the 2008 peak, he stressed how the UK banking system is in a sound position and that inflation remains the key focus, and that further rate hikes are possible if inflationary pressures persist.”

“With BoE rate expectations now supported, we think GBP/USD can head towards the key 1.2426 (December high) and 1.2500 resistances on the back of USD weakness and policy divergence relatively soon.”