Anna 
The GBP/USD pair is currently trading around 1.2675 levels, and economists at OCBC Bank assess the outlook for the British Pound (GBP) against the US Dollar (USD) ahead of the Bank of England (BoE) meeting scheduled for Thursday.
Key points from the analysis:
Resilient UK Economic Data: The UK has showcased resilient economic data, with services Purchasing Managers’ Index (PMI) remaining in expansionary territory. Business optimism and consumer confidence have shown signs of improvement, and public sector net borrowing (excluding banking groups) has come in much lower than expected.
Market Expectations: There is a shift in market expectations, with a 56% probability now priced for a 25 basis points cut at the May Monetary Policy Committee (MPC) meeting, compared to less than 50% probability a week ago.
BoE MPC Communication: The analysis suggests that any indication from the BoE MPC that hints at an earlier cut or a dovish tilt could impact GBP bulls. However, as long as the remarks from BoE officials do not sound excessively dovish, a pullback in GBP may present an attractive entry point for bullish positions.
In summary, the positive economic indicators and the overall resilience of the UK economy are anticipated to provide support for the GBP. The upcoming BoE meeting and associated communications will be closely monitored for potential market impact. Traders are advised to pay attention to any signals from BoE officials that could influence the direction of GBP/USD.
