At first, the British pound went down to 1.3383 because people were buying US dollars due to worries about a possible US attack on Iran. Later, news said the US attack may not happen for two weeks, so people felt safe and bought the pound again.
After that, the Bank of England (BOE) held a meeting and decided to keep the interest rate at 4.25%, as expected. Six out of nine members, including Governor Bailey, voted to keep the rate the same. Three members wanted to cut the rate, so the pound fell a little. But the BOE said they will keep their strict policy until inflation, caused by high energy prices from the Middle East situation, becomes lower. After this news, the pound went up again to 1.3469.
Even though there are still worries about the Middle East, the pound is likely to stay strong for the next few weeks because the US attack may not happen soon.
Pound-Dollar Expected Range: 1.3410 – 1.3510
Note: This information does not guarantee any profit. Please make your own decisions when trading.