Anna 
During Friday’s European session, the Pound Sterling (GBP) faced downward pressure as dismal market sentiment weighed on the appeal of risk-sensitive assets. The GBP/USD pair dipped to a weekly low near 1.2730 as the US Dollar gained strength, fueled by growing expectations that the Federal Reserve (Fed) might maintain interest rates within the range of 5.25% to 5.50% during the June policy meeting.
The Cable is experiencing strain due to anticipations that the Fed’s initial rate cut, which markets have long anticipated following a prolonged period of high interest rates, could be delayed further into the summer. This alignment of the Fed’s rate cut decision timeframe with that of the Bank of England (BoE) is expected to commence interest rate reductions from the August policy meeting.
Uncertainty surrounding the economic outlook of the United Kingdom may not permit BoE policymakers to prolong higher interest rates. The UK economy entered a technical recession in the latter half of 2023, and despite a slight uptick in January, there are no definitive signs indicating that the worst has passed.
