The GBP/USD pair ended last week strongly, staying above key support levels while the U.S. dollar struggled against major competitors. Looking forward, all eyes will be on the UK Consumer Price Index (CPI) report. This report could decide if the British pound continues to gain or experiences renewed selling pressure.
Weekly Forecast
There is room for further gains for GBP/USD, especially if the UK CPI report delivers a positive surprise. However, traders should stay cautious. A dovish signal from the Bank of England or a rise in U.S. yields could limit the pound’s rally.
Overall, the pair appears set for a week driven by data, with volatility likely peaking around the inflation release.
SOURCE: riveraglam.com
