The British pound, which experienced a remarkable rebound from record lows in late September, is expected to face a change in fortune, according to market analysts. After then-Prime Minister Liz Truss's tax-cutting plans caused a crash in the currency, a new government led by Rishi Sunak restored market confidence, and the UK economy proved more resilient than anticipated. Inflation in the UK is outpacing that of the US and the eurozone, which has led to speculation that the Bank of England may continue to raise interest rates to combat persistent inflation. Tighter monetary policy could increase the likelihood of a recession and prompt investors to sell the pound. Some experts argue that the pound has reached its peak, particularly as the tightening cycle is expected to impact the UK more than the US or Europe, and Concerns about inflation have led hedge funds and larger investors to wind down their bets on a stronger pound.