The British pound has climbed steadily against the U.S. dollar over the past 24 hours, continuing its recent strong uptrend. As of the New York close on April 15, GBP/USD was trading at 1.3236 — up 55 pips, or around 0.41%, from the previous day. This marks its highest level since October last year. During the session, it reached an intraday high of 1.3251 and a low of 1.3165, reflecting firm bullish momentum and clear buying support in the market.

A key driver behind the pound’s strength has been diverging expectations around monetary policy in the UK and the U.S. Recent inflation data from the U.S. signaled cooling price pressures, with March’s Producer Price Index (PPI) coming in below forecasts. In addition, several Federal Reserve officials have voiced dovish views lately, leading markets to price in as much as 90 basis points of rate cuts by the Fed before year-end. In contrast, the Bank of England appears more cautious. Although UK headline inflation eased from 2.8% to 2.6% in March, core inflation — particularly in services — remains sticky. As a result, investors now largely expect the BoE to hold rates steady for the foreseeable future. These differing policy outlooks have prompted a shift in capital from the dollar to the pound, helping push GBP/USD above key technical levels.

Meanwhile, renewed U.S.-China trade tensions have added pressure on the dollar. On April 15, the U.S. announced steep new tariffs on Chinese imports, including electric vehicles and semiconductors, with rates as high as 145%. China swiftly retaliated with its own countermeasures. Investors fear these protectionist moves could drag on global economic growth, especially at a time when signs of stagflation are emerging in the U.S. This has triggered a flight to safe-haven assets like the Japanese yen and gold, while the dollar has been left without much support and the dollar index has weakened.

Technically, GBP/USD has posted six consecutive daily gains and is currently trading within an ascending channel — a bullish formation. While the Relative Strength Index (RSI) is nearing overbought territory, no clear reversal signals have emerged yet. In the short term, as long as the pair holds above the 1.3200 level, it could attempt to break through the 1.3300 psychological barrier. On the downside, watch for potential support around the 1.3170 to 1.3130 range. A drop below that could trigger a technical pullback.

Looking ahead, today’s key economic events include the U.S. March retail sales report and a speech by Fed Chair Jerome Powell. Should consumer spending show signs of slowing, expectations for rate cuts could grow stronger — potentially further weighing on the dollar. On the UK side, markets will be watching February’s ILO unemployment rate and wage growth numbers, which could provide clues about the Bank of England’s next move on interest rates.

From a strategy perspective, any pullbacks into the 1.3170 to 1.3200 zone could offer buying opportunities, with an initial target set around 1.3300. That said, with some indicators pointing to overbought conditions, there’s a chance of profit-taking in the near term. Traders should keep positions in check and place tight stop-loss orders below 1.3130 to manage downside risk.