GBP/USD Strengthens on Healey's Support for UK Economy

The GBP/USD pair has strengthened above 1.3550 in early trading hours on Wednesday, maintaining its upside bias. The British Pound received support from Chancellor John Healey's announcements to encourage economic growth and private investment in the UK.

The Bank of England is expected to hold interest rates at 3.75% for the rest of the year and through mid-2027, according to a Reuters poll. BoE Governor Andrew Bailey emphasized that the central bank will not raise interest rates based on timing, but rather consider economic and geopolitical developments.

Analysts at UOB Group note that while GBP/USD is in a positive territory, it still trades within a relatively tight band between 1.3482 and 1.3550. They expect the pair to trade towards 1.3565, but do not anticipate breaking above major resistance at 1.3600.