GBPUSD with aggressive BoE bets and US default concerns, is aiming for a new multi-month high of over 1.2600 area.

GBPUSD Salient Points

To counter the previous day’s decline from the greatest levels since April 2022, GBPUSD receives more bids.

British political displeasure is overshadowed by the UK’s inflation problems and Brexit confidence. Enabling Cable purchasers to regain command.

Despite issues with the debt ceiling and financial instability, the US dollar is unable to support positive yields.

Prior to US, UK, and BoE statistics, White House negotiations on the US debt ceiling expiry will be crucial.

The Pound rebounds on a corrective course

As it reverses the previous day’s corrective fall from the multi-month peak ahead of Tuesday’s London open. The GBPUSD reaffirms its intraday peak above 1.2635.

Due to the UK holiday on Monday, purchasers of the Cable duo took a break, which was reflected in the quote’s decline from its best values since April 2022. But recent confidence around the (BoE) optimism, together with the US dollar’s inability to hold onto recent gains. Prompts the buyers of Sterling to withdraw their money.

The quotation excludes the newly released negative UK Halifax House Price data for April. Which decreased to -0.3% from 0.2% market expectations and 0.8% prior readings.

The Financial Times (FT) daily reports, in the same sentence. That “The (BoE) will be raising interest rates to the highest point as 2008 on Thursday. In light of official figures last month that indicated inflation stayed persistently elevated.”

The electoral setback for the ruling Conservative Party in the UK’s local elections and the US Dollar’s cyclical comeback. With higher US Treasury bond rates provide challenges for the GBPUSD bulls prior to crucial BoE and US inflation statistics.

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Prior to that, as he prepares to face off with Republican House Speaker Kevin McCarthy, Republican Senate Minority Leader Mitch McConnell. And senior congressional Democrats, US President Joe Biden can influence market movements.

The newly bullish US inflation predictions may allow the pair to retrace its recent rally around the multi-month peak. It should US officials surprise markets with an optimistic outcome and an agreement to prevent the US default.

Technical Analysis

In spite of the overbought RSI (14) circumstances, the GBPUSD pair declines. From the 78.6% Fibonacci Expansion (FE) of its movements from April 3 to May 2. The price’s failure to offer a daily close past the top at 1.2665 in May 2022. Also contributes to the failure to nudge Cable buyers.

Daily Technical Indicators