Pound Returns to Top of Range as Bond Yields Retreat

GBP/USD moved higher on Tuesday, but the advance was driven by the dollar side rather than sterling's own strength. The pair was last at 1.32711, approaching the key resistance zone of 1.3250 to 1.3300 again.

**Dollar Pullback Dominates Intraday Moves**

GBP/USD was broadly flat while Bank of England external member Mann warned on inflation risks, showing limited reaction to domestic policy signals. The pair then rose about two points in tandem with EUR/USD, while EUR/GBP was nearly unchanged, further confirming the move was driven by dollar weakness rather than active sterling strength. US Treasury yields retreated from earlier highs, putting some downward pressure on the dollar.

**Range Intact for Now**

On the technical side, 1.3250 has capped daily closing prices since September 30, with Friday's and Monday's highs both stalling at or just above that level; 1.3300 marks the top of the range and the point where the September 30 rally ended. On support, three consecutive session lows have settled below 1.3200, the lowest levels since late June, with the next support at 1.3150 followed by 1.3100. Although the pair has risen to 1.32711, whether it can break and hold above 1.3300 remains key to determining if the range dynamic has changed.

**Policy Signals in Focus Ahead**

The UK calendar has no data releases until Friday this week, only official speeches. The market has largely priced in a 25-basis-point rate hike on November 5, and both Mann and Greene voted for a rate increase on September 17. If the upcoming FOMC minutes show officials leaning toward another hike, that could provide renewed support for the dollar, which would be the most likely path for GBP/USD to break below the current range.