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GBP/USD continues to rise, consolidating between 1.3435 and 1.3250, hitting fresh 30-month highs. The pair is driven by diverging monetary policies, with the Bank of England (BoE) adopting a cautious approach to rate cuts, while the US Federal Reserve (Fed) leans toward a 50 basis points (bps) cut by November, weakening the US Dollar. Additionally, China's stimulus measures, including a Reserve Requirement Ratio (RRR) cut, boosted global risk appetite, further supporting the Pound. Technically, the pair has broken through key resistance and could challenge 1.3500 and 1.3550, with the Relative Strength Index (RSI) showing bullish momentum. Immediate support lies at 1.3249.

Key Highlights

* GBP/USD continues bullish trend, consolidating between 1.3435 and 1.3250.

*BoE cautious rate cut stance contrasts with Fed’s dovish outlook.

* China stimulus boosts risk appetite, supporting Pound Sterling.

*UK lacks top-tier data, focus shifts to US economic releases.

* GBP/USD eyeing resistance at 1.3500 with RSI showing bullish momentum.

GBP/USD extended its rally, consolidating between 1.3435 and 1.3250, reaching fresh 30-month highs. The ongoing divergence in monetary policy between the Bank of England (BoE) and the US Federal Reserve (Fed) has supported the Pound Sterling's strength. While BoE policymakers, led by Governor Andrew Bailey, indicated a cautious approach to interest rate cuts, Fed officials leaned heavily toward a 50 basis points (bps) cut by November. This dovish sentiment has kept the US Dollar under pressure, further lifting GBP/USD.

Additional support came from China’s stimulus measures, which included a reduction in the Reserve Requirement Ratio (RRR) by 50 bps, boosting global risk sentiment. The Pound gained as risk flows remained robust, driven by expectations of more economic aid from China. UK data releases were sparse, leaving the market's attention on the Fed’s key inflation gauge, the PCE Price Index, and US employment statistics.

Technically, GBP/USD has cleared the falling trendline resistance at 1.3199 and is poised for further upside. With RSI in bullish territory, the pair is likely to challenge the 1.3500 resistance level. If sustained, this could open the door to test the February 2022 highs at 1.3550 and beyond.

Finally

The GBP/USD pair maintains bullish momentum, targeting 1.3500 and 1.3550, while initial support lies at 1.3249.

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