Recent Performance:
• Price Movement: The British pound strengthened against a broadly weaker U.S. dollar, trading around $1.2973, close to last week's four-month high.
Technical Analysis:
• Support and Resistance Levels: The pair is approaching the 61.8% Fibonacci retracement level of the decline from 1.3433 to 1.2099, situated at 1.2923. A sustained break above this level could pave the way toward the previous high of 1.3433. Conversely, immediate support is observed at 1.2865; a break below this could lead to further consolidation.
Fundamental Factors:
• Bank of England (BoE) Meeting: The BoE is scheduled to meet this week and is expected to maintain current interest rates. Investors will focus on official remarks for insights into future monetary policy, especially considering market expectations of two additional 25 basis point rate cuts by year-end.
• UK Public Finances Update: Next week, Finance Minister Rachel Reeves will provide an update on the country's public finances, an event that could impact market sentiment and the pound's valuation.