GBP/USD to retest December 2021 lows between 1.3165-1.3175 – Westpac

Cost of living concerns hamper rate rises and GBP rebounds. In the view of economists at Westpac, the cable is at risk of falling towards December 2021 lows around 1.3175/65.

GBP held hostage as current inflation shock exacerbates UK’s cost-of-living crunch 

“The BoE has already cited the cost of living impact as a reason for its gradual tightening path. Debate within the MPC is likely to increase as fighting inflation with higher rates is likely to increase the cost-of-living burden on households and businesses.” 

“GBP/USD is threatening to break support within its lowered perceived 1.33-1.35 range and risk a retest of Dec 2021 lows between 1.3165-1.3175.”