GBP/USD held steady into Wednesday’s North American session after touching a one-week high, with the pound supported by firmer Bank of England tightening expectations and its sensitivity to higher oil prices as policymakers pursue price stability. The short-term rates market was pricing little chance of a change at next Thursday’s meeting, but it was factoring in about 17 bpts of tightening by 5 November and a cumulative 32 bpts by 17 December. Fiscal risk remained elevated ahead of the UK Budget due in late October, while the data calendar was described as light before Friday’s trade and industrial production releases.
Technical Analysis and Trend Indicators
Technically, the daily chart was characterised as maintaining a bullish trend since June, marked by a sequence of higher lows and higher highs. Resistance was placed near 1.3650, with support seen around 1.3480. Momentum indicators were mixed: the RSI sat marginally above 50 and was said to be edging higher, though the move was portrayed as small.
