Pound Sterling finds cushion as more interest rate hikes seem warranted

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• Pound Sterling finds significant pressure as higher interest rates deepen recession fears.
• The United Kingdom’s outlook turns out bleak as tight policy dampens economic prospects.
• BoE Pill said higher unemployment and lower vacancies would eventually lead to lower wage growth.

The Pound Sterling (GBP) senses an intermediate cushion after a sell-off move from the crucial resistance of 1.2800 as higher interest rates by the Bank of England (BoE) started deepening recession fears. Earlier, the GBP/USD pair drops significantly as higher interest rates are threatening the United Kingdom’s economic outlook. The UK’s strong labor market is loosening its resilience as firms slow down their hiring process amid bleak economic prospects.