The Pound Sterling has gained against the US Dollar, supported by the Federal Reserve’s dovish stance and a weaker US Dollar. The US Dollar Index has fallen to a new year-to-date low, reflecting market expectations for interest rate cuts.

While the Pound Sterling has shown strength, the Bank of England’s (BoE) recent comments suggest a cautious approach to further interest rate cuts. The BoE remains concerned about inflationary pressures and has emphasized the need for a gradual approach to monetary policy.

GBP/USD Technical Outlook

The GBP/USD pair has shown a strong upward trend, with the potential for further gains. The 20-week EMA provides support, while the RSI indicates a strong bullish momentum. However, the pair is approaching overbought levels, suggesting a potential for a short-term correction before continuing the uptrend.