The United Kingdom is officially entering a technical recession, with GDP growth negative for two consecutive quarters. Additionally, Catharine L. Mann, a policymaker at the Bank of England, stated that the central bank requires clearer inflation data before deciding on future monetary easing policies.

The US dollar faces downward pressure from investor expectations of the Federal Reserve's interest rate cut at the upcoming March meeting. This sentiment is further supported by James Bullard, a former Fed official, who suggested at a National Association for Business Economics (NABE) meeting that the Fed should consider lowering interest rates to prevent excessive economic slowdown.

Data from the United Kingdom's housing market indicates annual property prices increasing each year, which may support the GBP/USD pair, as the house price index rose by 0.1% year-on-year in February, compared to a previous decline of 0.7%.

Source: Fxstreet