GBP/USD Outlook: Slightly positive, but likely to move sideways as the rate is above its recent average but lacks a clear driver.
Key drivers:
• The Bank of England is expected to leave rates unchanged, with concerns about potential rate cuts later, creating uncertainty for the British Pound.
• In the U.S., the Federal Reserve paused its rate cuts, which has helped stabilize the US dollar against the pound.
• UK manufacturing growth could bolster the GBP, but broader economic conditions remain cautious, limiting upward momentum.
Range: GBP/USD is likely to drift within its recent range as external factors create mixed signals for movement.
What could change it:
• Upside risk: Stronger-than-expected UK economic data could support the pound and push rates higher.
• Downside risk: Increased geopolitical tensions could lead to a sell-off of riskier assets, negatively impacting the GBP.
