GBP/USD Price Forecast: Holds firm above 1.3350, but remains capped below key moving average
The GBP/USD pair gathers strength to near 1.3385 during the early European trading hours on Monday. A hawkish hike from the Bank of England (BoE) provides some support to the British Pound (GBP) against the US Dollar (USD).
The GBP/USD exchange rate held steady above 1.3350 during the early European trading hours on Monday. The British Pound (GBP) strengthened against the US Dollar (USD) following a 25 basis point (bps) rate hike by the Bank of England (BoE) in an effort to combat inflation. BoE Governor Andrew Bailey cited the Middle East conflict as the primary driver for the rate increase, while acknowledging that falling oil prices also played a role.
The central bank upgraded its growth and inflation forecasts for the current and next year, reaching 1.6% and 1.3% respectively. Analysts noted that the BoE's decision to raise interest rates to 4.00% matched the upper limit of the Federal Reserve's projected range, signaling a hawkish stance. However, the speech from the BoE hinted at a more cautious and less conviction-driven approach, as future policy decisions will depend on economic growth and geopolitical developments.
The GBP/USD pair remains capped below the 100-day simple moving average (SMA) at 1.3395, with resistance around 1.3395 and support near 1.3355.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
