GBP/USD hit its lowest level on record just over two months ago when it seemed to be a case of when, rather than if, the pair would break below parity. However, a combination of political and economic events in recent weeks has helped cable rebound strongly.
Despite inflation in the US remaining elevated, it is currently being exceeded by inflation across the pond in the UK, fuelling speculation that it may now be the BOE’s turn to be more hawkish than the Fed. Can this help fuel a sustained rebound for GBP/USD given that the opposite was one of the main drivers behind its grind lower this year?
Cable does appear to have stalled after briefly breaking above 1.2000 last week, but pullbacks are to be expected in an uptrend, and it now remains to be seen whether it can hold key support levels and continue to push higher.
Check out this article for an in-depth technical analysis on GBP/USD and key level to keep an eye on over the coming days: