FX.co ★ GBP/USD

The GBP/USD pair maintained its positive trend at the start of European trading on Wednesday, fluctuating around the 1.3550 level, as market participants analyzed recent domestic policy developments and the macroeconomic outlook. The pound's slight rise is primarily attributed to Chancellor John Healey's recently announced economic growth plan, which aims to stimulate business activity and attract strong private investment across the country. As part of Prime Minister Andy Burnham's broader decentralization agenda, the government plans to grant greater administrative powers to urban areas to boost local economies. Meanwhile, Chancellor Healey reaffirmed his firm commitment to fiscal discipline, emphasizing the need to ease operating costs for businesses and households, including a 25% reduction in regulatory fees before the next general election in 2029. At the same time, the monetary policy outlook continues to provide a stable environment for the pound. A recent Reuters poll showed widespread expectations that the Bank of England will keep its benchmark interest rate at 3.75% for the remainder of the year and until at least mid-2027. Bank of England Governor Andrew Bailey recently reiterated that future adjustments will be strictly dependent on changes in economic and geopolitical indicators, rather than following a predetermined timetable for interest rate cuts, reinforcing the central bank's cautious stance. Currency strategists at UOB Group noted that while the pound has shown a slight upward bias – potentially drifting towards the 1.3565 level – it will likely remain within a broader and more defined trading range of 1.3480 to 1.3600 over the next three weeks. Technical analysis of the daily chart indicates that the pair is maintaining a strong uptrend, reflecting the underlying demand for stability during periods of market contraction, with the spot exchange rate continuing to comfortably hold above the 100-day simple moving average and the lower Bollinger Band. Immediate resistance lies near the middle of the Bollinger Band at 1.3560, and a decisive daily close above this level could pave the way towards the upper Bollinger Band near 1.3660, with broader psychological resistance at 1.3700. Conversely, the initial bearish indicator is around the lower Bollinger Band at 1.3465, supported by stronger structural support from the 100-day moving average near 1.3445, where buyers are expected to strongly defend the broader bullish technical structure.