The GBPUSD is stabilizing at 1.2800 on Monday. Following a strong bullish performance last week that saw it surge to levels not seen since April 2022, above 1.2800. Investors are anticipating the release of crucial inflation data from the United Kingdom. On Wednesday at 6 a.m. GMT.
The GBPUSD pair is showing a significant decrease in volatility to begin the week. Ahead of the release of key price indicators from the Bank of England (BoE). Which will provide information on interest rate policy.
Moreover Tight labor market conditions and increased food prices in the United Kingdom have been important drivers of inflationary pressures. More interest rate hikes by the Bank of England are generally anticipated, as inflation has yet to materialize.
GBPUSD Technical Analysis: The pound finds support near 1.2800.
The British pound has stabilized after reaching a new 13-month high of 1.2848. The Cable is performing poorly, but it is projected to extend its four-day winning streak as the USD Index is under pressure due to a shift in opinion regarding the Fed’s interest rate outlook.
Furthermore Horizontal support is drawn from the high of 1.2667 on May 26, 2022, which will operate as a buffer for the Pound Sterling.
Moreover if the GBPUSD pair manages to break above a new 13-month high at 1.2848, sentiment will turn more optimistic. If the Cable falls below June’s low at 1.2370, the Pound Sterling may lose strength.
