17.06.202520:24 Forex Analysis & Reviews: GBP/USD. Analysis and Forecast

The GBP/USD pair is steadily holding above the key psychological level of 1.3500 ahead of the UK Consumer Price Index release and the upcoming monetary policy meetings of the Federal Reserve and the Bank of England.

At the moment, GBP/USD is trading within a narrow range above the round level of 1.3500. Spot prices remain close to the three-year high reached last week, reflecting sustained trader interest in the pair. However, market activity is restrained as traders await key macroeconomic data and central bank decisions.

UK consumer inflation data is expected on Wednesday. Its release may significantly impact the pound (GBP), particularly in the context of the Bank of England's monetary policy decision scheduled for Thursday. According to recent data showing the UK economy has contracted more than expected, interest rate cuts are likely, which could weigh on the pound.

The Federal Reserve's rate decision is also scheduled for Wednesday. Expectations of a potential rate-cutting cycle resuming in September are creating uncertainty and capping the US dollar's gains.

At the same time, rising geopolitical tensions are fueling demand for the US dollar as a safe haven, thereby strengthening it and limiting the upside potential for GBP/USD.

Overall, the current situation reflects a balance between supportive factors for the dollar and downside risks for the British currency. Traders are advised to closely monitor the release of key economic data and central bank announcements, as these may act as catalysts for significant GBP/USD movements in the coming days.

From a technical standpoint, prices remain near a multi-year high, and daily chart oscillators are in positive territory and far from the overbought zone—supporting a bullish outlook. As a result, any correction is likely to be viewed as a buying opportunity.