GBP/USD Price Analysis: The next upside barrier is seen at 1.2580
The GBP/USD pair snaps the three-day winning streak during the early European session on Wednesday. The downtick of the major pair is backed by renewed US dollar demand. At the press time, GBP/USD is losing 0.09% on the day to trade at 1.2525.
On Monday, the Bank of England (BoE) Governor Andrew Bailey said that it was too early to think about rate cuts and borrowing costs might have to rise again if inflation proved to be more persistent than estimated. Bailey further stated that the conflict in the Gaza Strip has increased the likelihood that inflation will rise again. Read more...
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GBP/USD holds steady near its highest level since September 9, just below mid-1.2500s
The GBP/USD pair trades with a positive bias for the fourth successive day on Wednesday and hovers around the 1.2535-1.2540 area during the Asian session, just below its highest level since September 9 touched the previous day.
The British Pound (GBP) continues to draw support from the overnight hawkish remarks by the Bank of England (BoE) officials, which, along with subdued US Dollar (USD) price action, acts as a tailwind for the GBP/USD pair. Speaking at a Treasury Select Committee hearing on Tuesday, BoE Governor Andrew Bailey warned that investors were putting too much weight on the recent data and are underestimating the persistence of UK inflation. Furthermore, Bailey stressed that the BoE would keep interest rates high for an extended period, downplaying speculations that the central bank will start policy easing by June 2024. Read more...
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