The British Pound (GBP) has edged higher to around 1.3285 against the US Dollar (USD) in early Asian trading on Friday, building on its strong rebound from Thursday. The pair has recovered from a 10-month low of 1.3137 hit on Wednesday, as the US Dollar weakens.
The US Dollar Index (DXY) is currently holding near 101.90, reflecting losses from the previous session. Later today, Federal Reserve Chair Kevin Warsh is scheduled to speak at 03:30 GMT during a Fireside Chat with IMF Managing Director Kristalina Georgieva. His remarks on the US economy and inflation could influence the Dollar’s direction.
On the UK side, Bank of England Governor Andrew Bailey has dismissed concerns over second-round inflation effects, though he described price pressures as “enormously frustrating.” His speech, scored at 6.2/10 by FXS Speechtracker, suggests a cautiously dovish stance, tempering expectations for aggressive near-term policy tightening. Bailey noted that the UK economy is “more resilient than we expected, not as strong as we need,” highlighting external risks like Middle East news affecting UK gilt yields.
Technically, GBP/USD is trading at 1.3282, just above the 20-day exponential moving average (EMA) at 1.3277, which acts as immediate support. The Relative Strength Index (RSI) at 47.99 indicates cautious bullish momentum. Key resistance lies at the September 30 high of 1.3311, while a breakdown below 1.3137 could see the pair fall toward 1.3100.