The GBP/USD pair remains steady above the 1.2400 level, but its upside potential appears capped as the US dollar sustains its bullish momentum. While the pound finds some support from a weaker global risk sentiment, the greenback continues to dominate due to hawkish expectations surrounding the Federal Reserve’s policy outlook.
Market participants remain cautious as data points from the UK and the US reflect diverging economic trajectories. The Federal Reserve’s commitment to curbing inflation through tighter monetary policy reinforces the dollar’s strength, while the Bank of England faces challenges balancing growth and inflation risks. With limited drivers to push the pound higher, GBP/USD is likely to stay range-bound unless a significant shift in fundamentals occurs.
