The Pound Sterling (GBP) has reached a two-week high against the US Dollar (USD) near 1.2550 in Monday’s London session. This increase is attributed to positive market sentiment and a decrease in the value of the US Dollar. The GBP/USD pair is strengthening as there is uncertainty surrounding when the Bank of England (BoE) will begin its interest rate cuts cycle, due to conflicting views from BoE policymakers on the inflation outlook.
Despite initially reaching its highest level since April 12 near 1.2550 earlier in the week, GBP/USD has since lost some of its gains. However, it is still holding above 1.2500, supported by the weakening US Dollar. The current technical outlook suggests that there is still a bullish bias, but buyers may hesitate unless the pair is able to surpass 1.2560.