Jakarta, GIC Trade – The pound received a strengthening boost for the third day in a row and climbed to a new weekly high. Where the market's buying interest in cable/pound sterling increased during the first half of the European session and lifted the price to the 1.21350 region in the last hour.
 
The pound's positive sentiment came after remarks from Bank of England (BOE) chief economist Huw Pill and policymaker Jonathan Haskel in front of the UK financial select committee alongside BOE Governor Andrew Bailey who said they chose to raise interest rates amid concerns over the inflation rate.
 
Meanwhile, the rise in the pound was also driven by the US dollar which corrected due to uncertainty over the Fed's interest rate hike path, thus putting downward pressure on US bond yields accompanied by a good recovery in global risk on asset sentiment weighing on greenback safe haven assets.
 
Nonetheless, the prospect of further policy tightening by the Fed will help limit the greenback's decline and limit meaningful gains for the GBP/USD pair.
 
Where earlier, Fed chairman Jerome Powell admitted on Tuesday that interest rates may need to move higher than previously expected.
 
In addition, expectations that the Bank of England (BOE) is nearing the end of the current rate hike cycle could contribute to limiting the pound's strengthening. Therefore, it remains to be seen whether the GBP/USD pair will be able to capitalize on the momentum or see new selling offers at higher levels.
 
Fundamentally, the latest statements from BOE officials supported the strengthening of the pound, while investor appetite for risky assets also weighed on the US dollar which ultimately helped the pound higher. Then how technically, see the following analysis:
 
Technical Analysis



GBP/USD on the 1-hour period moved upwards towards the 1.22650 resistance level after the MA25 line crossed the MA50 line indicating further gains. Meanwhile, to change the bias to bearish again, it is necessary to break the support level at 1.21090 again to the next support at 1.20190.
 
The bearish bias is also supported by the RSI indicator which is already in the overbought area or the 70 RSI level, so it has the potential to consolidate.
 
This Forex trading analysis is a fundamental and technical view used by the author, not a suggestion or a solicitation. To get more information click on the image below.