The pound sterling is trading stronger against the US dollar. This comes as investors are betting on a potential rate cut from the BoE as early as January. The interest rate decision will come ahead of flash PMIs. Earlier this week, inflation data saw a decline which eases pressure on the BoE in some way.
GBP/USD Maintains a Corrective Rally for Now
The currency pair rebounded off the support as noted previously. The current gains remain in place as GBPUSD remains on track to retest the 1.3100 level. If resistance is established, we expect prices to remain range-bound. But a lot will depend on the fundamentals, especially closer to the BoE meeting.