Recent Performance:
• Price Movement: The British pound experienced a 0.2% decline against the U.S. dollar on March 21, 2025, trading at $1.2940. Despite this dip, the pound was on track for its third consecutive week of gains.
Technical Analysis:
• Support and Resistance Levels: The GBP/USD pair faced resistance around the $1.3013 mark, with indications of short-term topping. Key support levels to monitor include $1.2910 and $1.2721. A firm break below $1.2910 could signal a deeper pullback, while surpassing $1.3013 may resume the rally from $1.2099.
Fundamental Factors:
• Bank of England (BoE) Decision: The BoE recently maintained interest rates, expressing concerns over escalating global trade tensions, particularly related to U.S. tariffs. Governor Andrew Bailey highlighted uncertainties regarding the trade war's impact on growth and inflation.
• Economic Indicators: The BoE adjusted its inflation forecast for Q3 2025 to 3.75% and raised its Q1 2025 growth estimate to 0.25%. Additionally, the UK reported higher-than-expected borrowing, posing challenges for upcoming fiscal policies.