GBP/USD Analysis 

GBP/USD: Economic Perspective 

The GBP/USD pair retreated today, approaching the 1.3230 level, as the US dollar strengthened against most currencies.
The British pound declined as the rise in US yields outweighed the Bank of England's stance.
Dollar strength is weighing on the GBP/USD pair; however, markets have already priced in 100 basis points of monetary tightening by the Bank of England by July 2027, though analysts have warned that rising energy prices are creating a challenging policy mix. Inflation risks are mounting at a time when growth momentum faces a challenging outlook, potentially leaving the British pound vulnerable.
Hawkish comments from Bank of England officials are also providing some near-term support for the pound.
Bank of England Deputy Governor Dave Ramsden stated yesterday, Monday, that raising the benchmark interest rate might be justified if upward pressure on inflation expectations continues to build. 

GBP/USD: Technical Perspective 

The GBP/USD pair has completed a "Shark" harmonic pattern on the daily chart, having approached the 1.3200 level by the end of last week's trading.
On lower timeframes, the pair is currently attempting to form a positive divergence on the MACD indicator, which could drive an upward correction toward the 1.3300 and subsequently the 1.3400 levels.
This scenario would be invalidated if the pair breaks below the 1.3140 level on a daily closing basis.