While most of the major currencies have become firmly anchored to broad-based trends in risk sentiment, the British pound has stubbornly refused to fall in with the heard, opting to remain preoccupied with relative monetary policy considerations.

The British pound ended the week at its strongest level against the greenback since January 2010.

The British pound tipped higher going into April and the rebound in the exchange rate may gather pace ahead of the Bank of England interest rate decision next week as investors speculate the central bank to gradually normalize monetary policy over the coming months.

Interest rate hike expectations remain the central driver behind British pound price action.

After a week of breakneck volatility that saw the Japanese yen surge to a record high only to rapidly reverse course amid the first coordinated G7 FX market intervention in over the decade, the outlook going forward appears anything but clear.

Last week's Bank of England rate decision proved to be another non-event, with traders now turning their attention to risk appetite until minutes from the sit-down are released in two weeks.

The British pound made another run at 1.6400 as the economic recovery in the U.K. continued to gather pace.

Next week, the British pound traders will be faced with Nationwide house prices, PMI manufacturing, and the M4 money supply.

The British pound broke out of the upward trend from the previous month.

Monetary policy is firmly in focus in the week ahead as the Bank of England delivers February's much-anticipated interest rate decision.