GBP/USD continues to stretch higher and trades above 1.3470 in the European session on Wednesday, after posting modest gains on Monday and Tuesday. The pair's technical outlook highlights a bullish stance as market participants keep a close eye on US politics.

The pound edged up on Tuesday, but still headed for its fourth monthly loss against the euro and its first loss since July against the dollar, where short-term action has been dominated by the risk of a U.

Sterling remained higher against the dollar and the euro following a speech from U.K. Treasury chief Rachel Reeves at the governing Labour Party’s conference.

The pound sterling has fallen to its lowest level in more than a year, and UK government bond yields have reached their highest point since 2008. Investors are concerned about the UK's fiscal outlook and the Bank of England's ability to control inflation.

Sterling edged lower against a stronger dollar on Thursday as investors looked ahead to a policy decision from the Bank of England, which is widely expected to leave rates on hold but could unveil changes to its bond sales programme.

Global trading of the Chinese yuan has surged to $817 billion a day, extending a decade-long trend with volumes nearing those of the British pound, according to the Bank for International Settlements.

Discover the oldest currency still in use today—the British Pound Sterling. Learn how it began in the 8th century and explore other ancient currencies that continue to shape global economies.

The Pound Euro exchange rate ( GBP/EUR) fell to a six-week low last week, as concerns about the upcoming autumn budget weighed on Sterling. At the time of writing, GBP/EUR was trading at €1.1472, down around 0.6% from the start of last week. Looking forward, Tuesday brings the preliminary PMI results for both the Eurozone and the UK in September.

After closing with small gains on Monday, GBP/USD holds its ground and trades slightly below 1.3450 in the European session on Tuesday. Markets cling to a cautious stance as investors grow increasingly concerned over a possible government shutdown in the US.