After going below 1.0356, the GBP/USD pair went up because people wanted to buy. In Asia, the cable broke out of a range of 1.0633-1.0724 where it had been stuck.

The new British government and the Bank of England (BOE) let GBP/USD markets down the day before by not stepping in to protect the pound (GBP).

Due to the huge revaluation of financial assets, the BOE is keeping a close eye on the financial markets. BoE also said good things about the government’s commitment to long-term economic growth and the role of OBR.

The Chicago Fed National Activity Index went from 0.09 and a revised 0.29 to 0.0 in August. “Getting inflation down will mean slower job growth and a higher unemployment rate,” said Susan Collins, president of the Boston Fed. On Monday, Loretta Mester, president of the Cleveland Fed, said that if the Fed makes a mistake, it’s better to do too much than too little.

Yields go up when traders look for extra money to hold riskier assets while stocks go down, which is good for the US dollar.

Conclusion

The short-term direction of GBP/USD will depend on news from the UK. The key intraday indicators will be US CB Consumer Confidence for September and August Durable Goods Orders.