The British pound is consolidating and awaiting direction, with support below 1.34 and resistance at 1.35 forming a confined range.

⑴ The British pound may remain in a narrow range in the near term, as bears have repeatedly failed to maintain momentum below the psychological 1.3400 level, while bulls are also unable to break through the resistance above 1.35, resulting in a lack of a clear directional catalyst for the pound. ⑵ After Bank of England Governor Bailey made dovish remarks, the pound edged lower. He stated that policymakers do not feel an immediate urgency to raise interest rates, but optimism around the US-Iran ceasefire extension agreement is providing some support for the pound. This agreement is currently awaiting approval. ⑶ On Thursday, the US PCE data came in slightly lower than expected, tempering hawkish expectations for Federal Reserve policy and adding some less bullish factors to the macro backdrop for the dollar. This may prompt pound bulls to shift their focus back to the 1.35 mark. ⑷ From a technical perspective, the pound is supported by the 200-day moving average at 1.3423 and the recent trend low at 1.3380. More importantly, key support sits at the lower band of the 30-day Bollinger Bands at 1.3352. To the upside, resistance is at the top of the daily Ichimoku Cloud at 1.3451, followed by the Fibonacci level at 1.3481, and this week’s highs at 1.3504 to 1.3509 form the upper pressure area.