Anna 
Amid market sentiment favoring risk-sensitive assets, the British Pound (GBP) appears poised for another round of upward movement. Investors are hopeful that the policy divergences between the Federal Reserve (Fed) and the Bank of England (BoE) will not further widen, as both institutions have adequate restrictive measures in place to ensure price stability, making the GBP/USD currency pair likely to advance further.
The further trajectory of the British Pound may receive guidance from the preliminary Gross Domestic Product (GDP) figures for the third quarter of 2023, set to be released later this week. Economists anticipate a slight dip in third-quarter GDP due to unfavorable demand conditions, with businesses in the UK making substantial labor and inventory reductions.
Additionally, ongoing declines in business investment are expected for the months of July to September as companies delay capacity expansion plans to avoid rising borrowing costs.
