Pound Weakens Against Dollar, Technical Uptrend Remains Intact
The British pound has weakened against the US dollar, with GBP/USD trading below 1.3450, but market analysts say the technical uptrend remains intact.
The pair's price action has pulled back from its recent high near 1.3500 due to renewed US dollar strength driven by firm Treasury yields and resilient US economic data.
The pound's resilience stems from expectations that the Bank of England will keep interest rates higher for longer, as inflation remains above target, while the Federal Reserve's cautious stance on rate cuts has kept the dollar bid.
Traders are now focusing on upcoming UK inflation figures and US jobless claims for fresh catalysts. The pair's direction will likely depend on the relative strength of the two economies and central bank policies.