GBP/USD hit the gas pedal and pumped out another strong session on Wednesday, lurching higher by another 0.85% and notching in a third straight session of firmly bullish gains.

Pound markets are firmly recovering after weeks of uneasy risk appetite, pushing GBP/USD to 16-week highs.

Despite warnings that the UK economy is overall weakening, Cable markets rallied following Wednesday's Monetary Policy Hearings from the Bank of England (BoE).

According to BoE Governor Andrew Bailey, A modest uptick in inflation is expected despite weaker growth figures, causing markets to readjust their rate-cut expectations for the rest of 2025. Rate markets now see less than 50 bps of total interest rate trims for the remainder of the year.

Source: FXStreet