GBP/USD rises to three-week high on UK inflation expectations

The GBP/USD currency pair has experienced a strong two-day recovery, reaching its highest level in over three weeks. This upward movement follows a period of downside rejections and a weaker US Dollar.

Market analysts suggest the rally is driven by expectations that UK inflation increased in September. This anticipation has fueled bets regarding a potential Bank of England interest rate hike during the November 5 policy meeting. Technical indicators, including a bullish engulfing pattern on the daily chart and positive momentum, support the current recovery trend.