Important events for today:

25.03 07:00 UTC: GBP – Consumer Price Index.

GBP/USD holds near 1.3430, supported by Bank of England rate expectations. At the March 19 meeting, the regulator unanimously kept the rate at 3.75% and highlighted that rising global energy prices are already affecting household fuel and utility costs in the UK. The Bank of England indicated readiness to respond if external shocks begin to feed more strongly into domestic prices.

Bond markets also support the pound. According to Reuters, two-year UK bond yields rose about 60 basis points in March, prompting market participants to consider a rate hike later this year instead of a cut. This strengthened the pound relative to other European currencies and revived demand after a weak start to the month.

Weak points exist: a recent KPMG survey showed declining consumer sentiment due to concerns about food and energy prices. However, for the forex market, interest rate differentials and the Bank of England’s willingness to maintain a tight policy are more important. As long as this factor dominates, the base scenario remains moderately bullish for GBP/USD.

Recommendation: BUY 1.3430, SL 1.3400, TP 1.3520