GBPUSD Analysis 12-August-2024

The British pound climbed above $1.276 for a second day but is on track to drop for the fourth week, marking its longest losing streak since last September.

The currency has been under pressure due to the Bank of England’s recent interest rate cut, and more cuts this year are possible as the bank quickly adjusts its policies in response to declining inflation.

GBPUSD Analysis 12-August-2024

This has created uncertainty for currency traders dealing with global economic challenges and issues within the UK. Weak economic data from the US and instability in Japanese markets have added to concerns.

Furthermore, recent unrest in the UK, including anti-immigration protests and rumors of tax increases, has lessened confidence in the pound. Although the pound initially strengthened after the Labour Party’s election victory, its recent rise has slowed because of market instability and fears of additional rate cuts.