The British pound remains range-bound against the US dollar, with GBP/USD trading around key moving averages, as investors await policy signals from Federal Reserve and Bank of England (BoE) officials. The currency pair has struggled to find clear direction, caught between shifting rate expectations and broader market sentiment.
The US dollar has held steady, supported by elevated Treasury yields and uncertainty over the Federal Reserve’s next policy move. While markets have been pricing in potential rate cuts later this year, recent comments from Fed officials suggest that policymakers remain cautious, keeping demand for the dollar intact.
GBP/USD 1-D Chart as of February 24th, 2025 (Source: TradingView)
Meanwhile, the Bank of England’s stance remains in focus, with traders looking for clues on whether policymakers will hold rates steady or pivot toward easing in the coming months. With UK inflation showing signs of cooling, expectations for a BoE rate cut later in 2024 have increased, adding pressure to the pound.
From a technical perspective, GBP/USD remains near key moving averages, with 1.2450 acting as a key support level and 1.2550 serving as resistance. A break above resistance could open the door for further upside, while a move below support may trigger additional selling pressure toward 1.2400.
Looking ahead, market participants will closely watch upcoming economic data releases, central bank speeches, and global risk sentiment. Any dovish signals from the BoE or Fed could impact rate expectations, influencing GBP/USD’s next move.
For now, the British pound remains in a consolidative phase, with investors awaiting clearer guidance from central bank policymakers. Unless a decisive catalyst emerges, the pair is likely to continue fluctuating around key technical levels in the near term.
