The Pound Sterling (GBP) refreshes weekly high as risk-appetite improves. The broader appeal for the GBP/USD pair is also upbeat despite the United Kingdom economy threatening to tip into a technical recession. This has come about due to vulnerable household spending and steep pessimism among business owners over the economic outlook. The Bank of England (BoE) is expected to struggle to reach a decision because of stubbornly higher price pressures and recession fears.

This will make it difficult for policymakers to stick to a restrictive interest rate stance. The market mood remains cheerful despite investors shifting their bets to the May monetary policy meeting for the first rate-cut by the Federal Reserve (Fed), which was previously anticipated in March. Fed policymakers have been supporting the narrative of higher interest rates for a longer period to ensure inflation returning to the 2% target in a timely manner. Pound Sterling climbs above round-number-level resistance at 1.2700 amid risk-on market sentiment. The near-term demand for the GBP/USD pair has turned bullish as it has jumped above the 20-day Exponential Moving Average (EMA), which trades near 1.2700. The 50-day EMA is near 1.2617. Fresh upside would appear if the Cable manages to climb above the round-level resistance of 1.2800. The 14-period Relative Strength Index (RSI) trades in the 40.00-60.00 range, which indicates a sideways performance.