The Pound Sterling continued its upward trend against the US Dollar, reaching new highs above 1.2950 in 2024. The GBP/USD pair is now eyeing UK inflation and jobs data for further gains. The technical setup remains favorable for Pound Sterling buyers.
The divergence in monetary policy between the US Federal Reserve and the Bank of England has been a key driver of the GBP/USD price action. The Fed’s expected interest rate cut in September has weakened the US Dollar, while the BoE has shown reluctance to follow suit.
Recent data releases, including the US Consumer Price Index and UK economic growth numbers, have further supported the Pound Sterling’s strength. Market expectations for a Fed rate cut in September have increased, while the BoE has hinted at delaying any rate cuts.
Looking ahead, UK CPI inflation data will be closely watched, along with speeches from Fed policymakers and the ECB’s monetary policy decision. Technical analysis suggests a bullish outlook for the GBP/USD pair, with key resistance levels to watch for on the upside.
Overall, the Pound Sterling’s recent rally against the US Dollar has been driven by a combination of economic data and central bank policies. Traders will continue to monitor upcoming releases and speeches for further direction in the currency markets.