Pound Sterling (GBP) reached a marginal new short term high in overnight trade as Asian markets caught up to the hawkish turn of events at yesterday’s BoE policy decision, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

GBP’s path higher may be blocked for now

"While the Bank cut rates, as expected, the vote split on the MPC suggested less chance of additional easing in the short run at least—and might imply the Bank will remain on hold for the balance of the year. Cable tested 1.3450 a couple of times in overnight trade but failed to progress. A push higher looks to be a matter of time."

"Steady pressure on the 1.3450 zone overnight has failed to yield additional gains and, despite solidly-bullish short-term trend momentum, the GBP’s path higher may be blocked for now. Minor dips to the upper 1.33/low 1.34 zone should remain well supported, however."