GBP/USD rallies to 1.3240 on UK budget boost, eyes central bank moves

GBP/USD extended its impressive winning streak to seven consecutive sessions, climbing to 1.3240 in early Friday trading, marking a gain of approximately 0.8% (105 pips) for the week. The pound's strength follows positive market reception of the UK autumn budget, which showed fiscal discipline while supporting growth initiatives. Sterling's momentum has been further supported by expectations that the Bank of England will maintain a cautious approach to rate cuts, contrasting with more dovish expectations for the Federal Reserve. Technical indicators show the pair breaking above the 1.3200 psychological resistance, with next targets at 1.3280 (October highs). Support has formed at 1.3180 (previous resistance turned support). Traders are now focused on upcoming central bank decisions, with the Fed meeting on December 18 and the BoE on December 19, which could determine whether the pound's rally continues into year-end.