A GBP/USD rebound could be likely this week, but much will depend on the market’s appetite for the greenback and response to U.S. inflation figures.

Analysts at HSBC have said there are only one in three outcomes to Thursday's Bank of England policy meeting that might support Sterling upside.

Pound Sterling has retraced from the peaks of its October rally against the Dollar and further losses are possible over coming days, particularly if the Bank of England disappoints markets by shying away from raising interest rates.

The Pound can still advance in value against the Dollar says a leading strategist we follow, supported in part by the stimulatory fiscal impulse provided by this week's budget announcement, although for now gains will likely be capped ahead of next week's central bank updates.

GBP/USD steadier & supported at 1.3724 & then 1.3713, but could struggle on any recovery above 1.3800.

GBP/USD buoyed after BoE confronts inflation risks, but momentum could fade on advance above 1.38.

Analysts at MUFG have raised their forecasts for the British Pound in light of a sustained fall in UK Covid-19 cases which they say will ultimately allow the Bank of England to raise interest rates in 2022.

The GBP and JPY were the outperforms at the start of the new week with gains underscoring the importance of investor sentiment in the current foreign exchange market environment as market participants consider the shift in risk surrounding the UK referendum and the BoJ policy decision.

The pound is in decline against the dollar: the average GBP to USD exchange rate was at 1.4415 in January 2016, 1.4313 in February and 1.4249 in March.

Any strength in the pound to dollar exchange rate strength is forecast to be temporary according to analysts at Westpac.

One of the best performing currency pairs of the latter part of the week, GBP/USD is coming under renewed pressure. 

The pound to dollar exchange rate (GBPUSD) has bounced by an eye-opening 0.8% in the wake of the US Federal Reserve’s March policy meeting.