As inflationary pressures persist in the UK, the Bank of England will continue to cut interest rates

On Friday (May 17), the pound fell slightly against the dollar in early Asian trading, temporarily reporting 1.1.2655, down 0.12%. Green, the Bank of England's monetary policy committee member, said that the Bank of England should wait for more solid evidence that strong inflationary pressures are becoming less stubborn before cutting interest rates.

The latest developments at the Bank of England

Ms Green said the extent to which sustained inflation would ease was more uncertain than the impact on the economy of the BoE's high interest rates. "I think the burden of proof is on the sustained weakening of inflation, considering how long we have to maintain restrictive policy before we can ease policy," she said. Last week, Ms Green joined a majority of the BoE's monetary policy committee in voting to keep the bank rate at 5.25 per cent, although two members supported a cut. In April, she said a UK rate cut should be "some way off" because of persistent inflationary pressures.

GBP/USD technical analysis:

The direct resistance level for GBP/USD seems to have formed at 1.2700. If the pair breaks above this level and starts using it as support, it is possible to target 1.2760 (Fibonacci 78.6% retracement level of the latest downtrend) and 1.2800 (psychological level, static level).

The above is all about the continued inflationary pressure in the UK. If you are interested in other foreign exchange information, you can continue to pay attention.