GBP/USD trades higher on expected BoE rate hikes
The GBP/USD pair is trading in positive territory around 1.3430.
The UK government leadership transition and growing expectations of further Bank of England interest rate hikes underpin the British Pound against the US Dollar.
Traders have ramped up bets on the BoE interest rate hikes amid escalating tensions between the US and Iran. Markets are now fully pricing in a 25 basis points BoE rate increase by year-end, most likely in December.
The pair is edging higher toward the upper Bollinger band, while the 14-day Relative Strength Index hovers just below the 60 mark, suggesting firm but not overstretched upside momentum