Pound Fends Off Dollar Weakness Amid Slumping Rate Hike Odds

The British Pound (GBP) traded relatively steady against the US Dollar (USD) on Thursday, hovering around the 1.3460 mark after a minor pullback from its Wednesday high of 1.3486.

The GBP/USD pair remained within a narrow 100-pip trading range as buyers struggled to push prices above the key 1.3500 resistance level while persistent US Dollar weakness continued to provide support near the 1.3400 region.

Sterling found support during the previous session following an upward revision to the UK S&P Global Services PMI for July, which signaled stronger-than-expected activity in the services sector.

Market analysts remain cautiously optimistic on the Pound's outlook. Strategists at Scotiabank describe the technical picture as 'neutral to bullish', noting that last week's advance in GBP/USD and improving momentum indicators suggest there is still room for additional gains.