Inflation in the UK is going to be above 3% according to BoE governor Mervyn King so cutting interest rates is off the table. However raising rates would damage the recovery taking place. Basically, there is a very unclear picture about the interest rate prospect, though the market expects a hike in May. GBP/USD is cracking important resistance at 1.63. GBP/JPY is threatening to resume bullish trend, GBP/CHF is supported at 1.49. EUR/GBP and GBP/AUD have been ranging. Let's take a look at the pound-crosses and the outlook in March.