The Pound Sterling traded in a narrow range against the US Dollar on Tuesday, edging modestly higher to near 1.3700 as markets adopted a cautious stance ahead of the BoE first policy decision of 2026.

While the U.S. is not currently in a recession, the economy is struggling to avoid a downturn.

The retest strategy is built on patience. Instead of chasing the surge, you let the breakout happen and allow the excitement to cool off. Then you wait for price to pull back to the level it just broke.