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GBP/USD stays above 1.3200 as USD upside is capped

The pound is supported by expectations of tighter Bank of England policy as sticky, energy linked inflation continues, while the dollar pauses after a rally to its highest level since April 2025.

Reported · Written up by our desk · Major Pairs

The GBP/USD pair extended its consolidation during the Asian session on Tuesday, holding above 1.3200 and staying within a familiar range seen for about the past two weeks, according to FXStreet.

FXStreet said investors are pricing in tighter monetary policy from the Bank of England due to sticky inflation tied to elevated energy prices, which has helped underpin the British pound.

At the same time, the US dollar paused after a recent strong rally that pushed it to its highest level since April 2025, limiting upside for USD and acting as a tailwind for GBP/USD.

FXStreet also pointed to persistent geopolitical uncertainties and elevated US bond yields, plus developments in the Middle East, as factors that have supported a bullish undertone for the pair.

Latest closeGBP/USD 1.321 ▼0.2%

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