The currency pair remains range-bound amid a resilient USD and expectations of a later Bank of England rate hike.
The GBP/USD pair trades in a tight range around the mid-1.3400s, failing to extend its recovery from last week’s low. A firmer US Dollar, driven by Fed rate hike speculation and US-Iran deal uncertainty, limits upside momentum.
Expectations of a delayed Bank of England rate hike weigh on the British Pound, following softer UK inflation data and a surprise rise in unemployment. Traders await key US economic releases and BoE Governor Andrew Bailey’s comments for further direction.
Technically, the pair remains below its 200-period SMA on the 4-hour chart, while trend-line support near 1.3356 prevents deeper declines. Momentum indicators suggest stabilizing downside pressure rather than a clear bullish shift.