GBP/USD Shows Strength Amid US Dollar Weakness

The GBP/USD currency pair has gained bullish momentum, appreciating nearly 0.5% on Monday and breaking a six-day losing streak. Currently, the pair is trading within a demand zone, where the potential for a rebound appears plausible.

Bearish pressure on the US Dollar (USD) has contributed to the upward movement in GBP/USD. Additionally, with no significant macroeconomic data set for release, the recent pullback in US Treasury bond yields has hindered the dollar's ability to maintain the gains it achieved the prior week.

Later today, Bank of England (BoE) Governor Andrew Bailey and members of the Monetary Policy Committee (MPC) will address inquiries from the UK Treasury Select Committee, which could further influence market sentiment and the pound's standing.

Traders are now contemplating a potential retracement in the GBP, focusing on how this dynamic might unfold in the wake of ongoing economic developments and central bank dialogue.

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