GBP/USD Consolidates Near Key Support Level Amid Ongoing Economic Uncertainty

The GBP/USD exchange rate has consolidated near its key support level of $1.3363, as traders await further developments in the economic landscape.

Earlier this week, the Bank of England maintained its benchmark interest rate at 3.75% with a split vote, providing stability to the Pound Sterling and supporting demand for the currency.

This move was followed by the US Federal Reserve's decision to keep rates unchanged, which weighed on the dollar and created an opportunity for GBP/USD to gain ground.

However, the subsequent hawkish comments from the Fed and renewed geopolitical tensions led to a brief rebound in the dollar, tempering some of the initial Sterling gains.

Momentum indicators suggest bullish conditions, with overbought signals warning of potential short-term caution. The expected price range for GBP/USD is $1.3374 to $1.3508 over the next two to three trading days, representing a typical volatility band relative to current levels.