The pound fell back after the BoE hinted at a slower tightening as inflation seemed to have peaked. The medium-term outlook still supports the recovery theme after the pair bounced off 1.1900. The recent choppy action below the mid-December high of 1.2450 could be a mere consolidation phase even though short-term volatility cannot be ruled out. On the hourly chart, a break below 1.2270 would lead to 1.2170, forcing intraday bulls to reconsider. A close above 1.2300 is needed to alleviate the downward pressure.
