GBP Faces Pressure as BoE's Pill Warns of Persistent UK Inflation

GBP/USD remains under pressure near 1.3150 as Bank of England MPC member Huw Pill highlighted concerns about stubbornly high UK inflation and wage pressures. Pill noted that domestic inflation is falling at a slow pace, with underlying price pressures not yet aligned with targets. He specifically pointed to Brexit-related labor market changes and reduced workforce participation as factors enabling larger wage markups that could sustain inflationary pressures. The recent UK budget's tax changes have also directly impacted inflation expectations. Despite these concerns, Pill expressed increased comfort with the balance of inflation risks compared to 6-12 months ago. Technical analysis shows GBP/USD facing resistance at 1.3200, with support at 1.3100. The pound's outlook remains clouded by the BoE's challenge of balancing persistent inflation against growth concerns.