The British pound appears very weak against the US dollar. The current GBPUSD exchange rate stands at 1.2344.
The pound is vulnerable due to the difference in the US and UK government bond yields, disparate economic prospects, and technical signals. GBP has been under pressure since mid-March, when the US dollar strengthened significantly. The Federal Reserve is abandoning expectations of interest rate cuts this year, while the Bank of England intends to do so.
The pound's decline was also driven by the BoE's recent comments about interest rates: inflationary pressure in the country is weakening, increasing the likelihood of upcoming monetary policy easing.
Last Friday, Bank of England deputy governor Dave Ramsden stated that UK inflation could turn out weaker than the regulator's recent forecasts. Bank of England governor Andrew Bailey noted last week that inflation could fall to 2% in May, which is the BoE target for the consumer price index.
The Bank of England will be closer to lowering rates unless there are significant economic changes, and everything remains as it is now. This will be the basis for sales in the GBP.