Ella 
The GBP/USD pair struggled to gain any significant momentum on Thursday, as the Asian market maintained a tight range below the mid-1.2100 level. GBP/USD is trading at the bottom of its one-week range and is waiting for new catalysts before moving in the next direction.
The Bank of England’s (BOE) next policy actions are unclear, and the Pound (GBP) continues to be relatively sluggish, which is seen as a key factor in the GBP/USD’s headwinds. The latest UK consumer inflation data released on Wednesday showed that headline inflation held steady at 6.7% in September, compared to expectations for a slight decline to 6.6%, contrary to bets that the Bank of England could raise interest rates in November. Meanwhile, the Office for National Statistics (ONS) reported earlier this week that wage growth slowed slightly in the three months to August, which could keep the Bank on hold.
Earlier, Huw Pill, the Bank of England’s chief economist, said last week that the problem with raising interest rates further is maintaining a finely balanced policy. In addition, Bank of England policymaker Swati Dhingra warned that excessive tightening risked damaging the UK’s supply potential, while Catherine Mann argued for an aggressive monetary policy to fight inflation. Disagreement within the Bank of England’s Monetary Policy Committee (MPC) over how to respond to incoming economic data has prevented traders from placing fresh directional bets on the GBP/USD ahead of the release of a second tranche of employment data next Tuesday. Meanwhile, USD bullishness may be preventing GBP/USD from moving higher.
A growing number of analysts believe that the Federal Reserve (Fed) will keep interest rates higher for longer while the U.S. economy remains strong, which will continue to support the Dollar. At the same time, this prospect pushed 10-year U.S. Treasury yields to a 16-year high.
