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Will the Old Lady ride to rescue the GBP/USD after it falls under the dollar sword?

Yesterday, the surprise change in the US Fed Dot Plot plan is what lit a touch paper under the US dollar and that dealt the pound a heavy blow. As reported on here at the time, the GBP/USD immediately reversed its earlier session gains to 1.2421 and later fell below 1.2350. The pound closed in the US at 1.2344. It has extended that fall to as low as 1.2305 so far today. Now later today, at 11am GMT the Bank of England will have to decide on its monetary policy. Right now many believe the Old Lady (as the BOE is affectionately known) will call a halt to its tightening cycle. However, the broad consensus is still for another 0.25% rate increase. There will be plenty to add on all this ahead of the decision, but I did ask the same question last night, when reporting the move lower in the pound, as the dollar rebounded. So, we shall see in due course. The GBP/USD is just now trading at 1.2316
 

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