Sterling is holding firm above 1.35, benefiting from diverging rate expectations. With the Bank of England not expected to cut rates soon due to stubborn inflation, the policy gap with the Fed supports GBP strength. The pound shrugged off a political reshuffle and continues to trade on macro fundamentals.
On the chart, GBP/USD is pushing above both the 50- and 200-day SMAs near 1.30–1.31, confirming bullish momentum. A break above recent resistance at 1.3550 would reinforce this trend. The near-term bias for GBP/USD remains bullish, driven by yield differentials and solid technical support.
