GBP/USD on track to break below the July 29 low near 1.2065 – BBH

GBP/USD has stabilized after its post-BoE sell-off but remains heavy. Economists at BBH expect the pair to drop under July 29 low around 1.2065.

BoE is set to continue tightening

“A move above 1.21 earlier today failed to trigger any follow-through buying. We believe GBP/USD is still on track to break below the July 29 low near 1.2065.”

“Despite the gloomy outlook, the Bank of England is set to continue tightening as inflation spirals ever higher.”