GBP/USD Range-Bound at 1.2180 as BoE Support Counters USD Strength

GBP/USD maintains a tight trading range between 1.2150-1.2220, currently at 1.2180, as Bank of England hawkishness provides support against broad dollar strength. The pound finds resilience from BoE officials' continued emphasis on persistent UK inflation concerns, with recent comments suggesting rates may need to remain elevated longer than previously anticipated. However, sterling gains are capped by robust US dollar performance following strong economic data. The pair's 50-day moving average at 1.2195 acts as immediate resistance, while the 200-day MA at 1.2165 provides dynamic support. Range traders are capitalizing on the established boundaries, with volatility indicators suggesting continued consolidation. A decisive break above 1.2220 could target 1.2280, while failure to hold 1.2150 would expose 1.2080. Market focus shifts to upcoming UK employment data for potential range breakout catalysts.