GBPUSD Rallies Higher To Become Today’s Top-Performing Pair

The GBPUSD currency pair was trading up over 80 pips at writing as the British pound rallied higher against the US dollar despite the lack of news releases from the UK docket. The pair soared higher in the early London session and did not look back. 

The pound’s strength was surprising as many analysts expected the US dollar to be stronger as the pair had been on a downtrend since mid-May. However, despite the dollar clawing back some of its gains, the pound looked strong early in the North American session.

The currency pair saw a wave of buying despite the lack of fundamental drivers as investors bid up the pound at the dollar’s expense. Moreover, the buying came even as analysts remained bearish on the pair, despite being one of today's top performers. 

Looking at the fundamentals, the Bank of England might have to raise rates further to combat record-high inflation, as the Federal Reserve may also have to raise rates one more time before reaching peak rates.

However, at the moment, most leading central banks, including the ECB, are about to reach the end of the rate-hiking cycles, although analysts remain focused on the inflation readings for each specific country. 

Today’s primarily empty economic calendar left the GBP vulnerable to investor sentiment, which lifted it higher and still held it near its daily highs at writing. The pound remains subject to investor sentiment as North American traders get to their desks and start trading. 

The future outlook for the currency pair is uncertain as markets look forward to the release of the US Conference Board’s consumer confidence index, set for later today. The consumer confidence index is a crucial indicator watched by most market participants and could force the GBPUSD pair to give up some of its gains. 

*This is not investment advice. 

The GBPUSD price chart.

The GBPUSD currency pair was trading up 80.6 pips (0.67%) as the pound rallied against the dollar.