The GBP/USD reached 1.25 handle last week, before dipping back below the high of its prior range around 1.2450. This level is now very important.

The British Pound could experience a setback as the Bank of England will surprise investors by keeping interest rates on hold in early May, according to a leading investment and commercial bank.

GBP/USD recovery disrupted by soft U.S. data, as resistance stymies path above 1.25 on chart.

The Pound to Dollar exchange rate eased from close to one-year highs in the final session of a holiday-shortened week for some markets but the trend on the charts has shifted in favour of further gains and many analysts are tipping new highs for the months ahead. 

The British Pound is a 'buy on dips' as a brighter UK economic outlook combines with a broader Dollar retreat to keep 2023's uptrend in GBP/USD say analysts.

The Pound to Dollar exchange rate rose strongly in March but could climb further to retest the year's highs near 1.25 this week as a fresh rally in oil prices keeps the immediate interest rate risks tilting higher at the Bank of England (BoE) and more so than for the Federal Reserve (Fed).

A move to 1.27 would offer Sterling sellers their greatest purchasing power since April 2022.

Goldman Sachs says it is turning more constructive on the Pound's prospects amidst a broadly improved domestic environment, but it is still too soon to get outright positive.

Capital Economics, the independent economics research provider, maintains a view the Dollar will continue to strengthen over the coming weeks, but it should turn lower from around mid-year.

GBP/USD recovery intact but facing resistance overhead.

The Pound to Dollar exchange rate has remained buoyant near to six-week highs in recent sessions but could edge higher still this week if global markets stabilise ahead of eagerly awaited interest rate decisions from the Federal Reserve (Fed) and Bank of England (BoE).

The Pound to Dollar exchange rate has rebounded sharply from 2023 lows and may rise further in the days ahead but volatility could also be likely later this week as U.S. inflation data and the UK budget bring the 'cost of living' and 'price of not dying' back into focus and perspective on both sides of the Atlantic.

"A more modest 25bp hike on March 23rd could prove some downside risks to GBP/USD - perhaps to the 1.16/18 area" - ING.

The Pound to Dollar exchange rate has remained subdued while the prospect of recovery has appeared to slip further from view in recent trade but Sterling still benefits from a thicket of technical supports located around 1.19 on the charts, which could continue to limit any losses in the days ahead. 

The Pound to Dollar exchange rate has most recently succumbed to a broad rebound by the greenback that could be likely to constrain any attempted recoveries this week even if Sterling does itself manage to defy any further headwinds blowing in from across the Atlantic over the coming days. 

GBP appreciates sharply aided by strong PMI data as improved political climate also bodes well, say analysts.

The Dollar is expected to maintain pressure on the Pound and Euro for the first half of 2023.

GBP/USD supported near & around 1.1950 short-term, but upside limited by growing UK-U.S. rate headwinds.

2023 will be tough for GBP says Bank of America, but 2024 has silver linings.

GBP/USD forecasts at Wells Fargo show 1.26 on horizon, EUR/USD to stay near current levels until H2.