GBP/USD: Dovish message from the BoE to lift sterling above 1.40 – OCBC

GBP/USD is rising back above 1.3900 as covid cases in the Kingdom continue to drop. The focus shifts towards the Bank of England (BoE) monetary policy decision this Thursday where a dovish message would help the cable to break above 1.4000, in the view of analysts at OCBC Bank.

Steady decline in the new coronavirus infection

“Delta-variant developments in the UK have turned more positive last week, and businesses appear to be notably optimistic after the reopening. These may be supportive of GBP/USD upside, but pandemic-related positives are flimsy and prone to re-emerging cases.”

“The pair may need the BoE to come out clearly less dovish than expected in its Thursday meeting for it to breach 1.4000.”