There has not been that much action in the British pound over the past 24 hours because of the lack of UK economic data. Therefore the pound is unchanged against the US dollar but has strengthened against the Euro for the third consecutive trading day. For the British pound, traders are simply waiting for more direction on whether the Bank of England will actually be following through with the three interest rate cuts that the market is pricing in.
The latest Bank of England minutes and the Quarterly Inflation Report has suggested to the market that the central bank is growing increasingly dovish, but the BoE is full of surprises. They are a very dynamic central bank that is keen to engineer a stable economy through monetary policy. However at the same time, they face the same inflation risks as the Eurozone, albeit by a smaller degree. Therefore until the BoE actually lowers interest rates or we get more economic data that necessitates them to do so, the British pound may continue to trade on US data and risk appetite.