Sterling Stability at Risk as Bank of England Warns on AI Regulation

The pound sterling (GBP) is trading flat against the Thai baht (THB) today, with the pair holding steady at ฿44.635. Despite a modest move higher for the day, analysts note that the GBP/THB remains above its key moving averages, indicating steady upward momentum in both the short and long term.

According to Bank of England governor Andrew Bailey, loosening AI regulation in finance raises systemic cyber risk for the UK banking sector. This warning highlights growing concerns about AI risks alongside rising financial system debt, focusing market attention on regulatory measures for Sterling stability.

Technical indicators suggest a bullish trend across all key timeframes, with the GBP/THB trading near its daily high and projecting a range of ฿44.412 to ฿44.858 in the coming days. However, analysts also note that momentum signals are stretched, with overbought conditions reflected in both Stochastic RSI and CCI.

In the short term, traders anticipate a volatility band between ฿44.412 and ฿44.858, with further upside considered highly probable. A sustained breakout above the upper boundary could open the way for additional gains, while a break below support near the Ichimoku Kijun would signal a bearish scenario.