GBP/USD Rises on Cheap Oil, Reduced Rate Hike Bets

The GBP/USD currency pair rose by 0.07% to $1.3330 on Monday, its second consecutive session of gains after hitting three-week lows on Thursday.

This comes as Brent crude oil prices collapsed by over 7%, the dollar weakened against all G10 currencies, and the US Dollar Index eased towards 101.19.

The technical configuration suggests that the market has become neutral, with four different moving averages (8-day exponential, 21-day, 50-day, and 100-day) converging on the same price, a sign of indecision.

Investors scaled back their bets on Bank of England rate hikes, which would normally be pound-negative, due to the sharp drop in oil prices easing concerns about energy-driven inflation.