On Monday (Oct 31), the subsession, / retreated to 1.1590, down 0.16%.
The UK consumer price index rose 10.1 per cent in September from a year earlier, still at a 40-year high, according to the Office for National Statistics.
Meanwhile, the UK fell 0.3 per cent month-on-month in August.
The pound has come under pressure from several forecasts of a recession in 2023.
Moyeen Islam, a fixed income strategist at Barclays, said in a note that the U.K. should continue to raise interest rates in the near term due to high inflation, but could pause from early 2023.
With inflation still high and the Labour market still tight, there is not expected to be any near-term resistance to further policy tightening.
But if the economy slows, the Bank could pause in the first quarter of 2023.
Islam said Barclays expected the boe terminal to be lower than the current market pricing, which is around 4.85 percent.
The boe is likely to ensure that the lower terminal rate GBP/USD 1.1500(Fibonacci 23.6% retracement of the latest uptrend, psychological level, ex-resistance, SMA 20) is aligned as a key near-term support for GBP/USD by “keeping rates on hold at restrictive levels for longer beyond 2023”.
