GBP/USD Trading Range Remains Intact Amid Lower Oil Prices

The British Pound (GBP) has been trading in limbo against the US Dollar (USD), as markets reassess expectations of a Bank of England rate hike.

The decline in oil prices, particularly Brent crude, which fell to $100 per barrel, has eased concerns about an immediate supply shortage.

This development has led to a scaling back of expectations for a BoE rate hike. The GBP/USD pair edged higher to 1.3371 on Tuesday but later retreated to levels below 1.3370.

The British Pound's earlier gains were reversed as data from the UK revealed that public sector borrowing increased beyond expectations in August, reaching £18.26 billion.

This figure is well above the forecast of £15.70 billion by market analysts and rekindled concerns about government finances, putting pressure on the GBP/USD pair.