Ella 
Sterling (GBP) looks set for another round of gains as market sentiment supports risk-sensitive assets. The GBP/USD pair is poised for further gains as investors hope that the policy divergence between the Federal Reserve (Fed) and the Bank of England (BoE) will not widen further as both institutions have sufficient restrictive measures to ensure price stability.
Further moves in sterling are likely to be guided by preliminary gross domestic product (GDP) readings for the third quarter of 2023 due later this week. Economists expect gross domestic product to fall slightly in the third quarter as British businesses slash their workforce and inventories due to a poor demand environment. Business investment is expected to remain lower in July-September as companies delay capacity expansion plans to avoid rising borrowing costs.
