Sterling Falls Below Resistance Amid Lack of Domestic Catalysts

Sterling traded at 1.3605 on Wednesday, down 0.21% against the dollar, after breaking below the 1.3620 area that has floored the intra-week range.

The GBP/USD pair has been grinding against a ceiling it cannot clear while defending a floor it keeps returning to, with resistance at 1.3660 proving stubborn.

The Bank of England has been on hold since July, and the next decision is September 17, with no domestic catalysts driving the rally.

The UK's 10-year gilt yields sit at 4.99%, the highest in the G7, while sterling has added roughly four cents from its early-August base and sits 2.8% above the recent low of 1.3165 printed on June 24.