The Pound Sterling (GBP) is outperforming other major currencies today, driven by positive indicators of economic growth.
GBP Poised to Reach 1.2900/50 Mark
Recent data shows that June GDP remained steady, while UK Q2 GDP increased by 0.6% q/q, in line with expectations. Industrial production in June saw a stronger-than-expected 0.8% m/m growth, with manufacturing up by 1.1%. Despite the robust growth, the Bank of England is still expected to lower interest rates in the coming months, but the data suggests a delay in a rate cut until September.
Although the Pound’s rally from the upper 1.26s has slowed in recent sessions, technical analysis points to a bullish trend. An intraday chart indicates a possible bullish flag/wedge pattern forming, with a potential rise towards 1.2900/50 once the GBP breaks above 1.2865/75.
Analysis:
The Pound Sterling’s strength against other major currencies is driven by positive economic data, suggesting a potential rise towards 1.2900/50. Investors should monitor key levels for a breakout and consider the impact of the Bank of England’s future rate decisions on the GBP’s performance.