British Pound rebounds from July 30 lows vs retreating USD as traders await BoE decision
The GBP/USD pair stages a modest recovery from its lowest level since July 30, around the 1.3375-1.3370 region touched earlier this Thursday, and, for now, seems to have snapped a three-day losing streak.
On Thursday, the GBP/USD pair experienced a brief recovery from its lowest level since July 30, hovering around the 1.3375-1.3370 region. However, traders remained cautious as they awaited the Bank of England's (BoE) decision on interest rates. The UK central bank was widely expected to keep rates steady, with analysts focusing on the Monetary Policy Committee's vote distribution and forward guidance.
Market participants were pricing in a potential 25-basis-points (bps) rate hike by the BoE in 2026, driven by inflation concerns due to higher energy prices. Meanwhile, US Treasury bond yields showed a modest decline, providing some relief for the US Dollar (USD) and contributing to profit-taking. The Federal Reserve maintained a hawkish stance, raising interest rates for the first time since 2023, while geopolitical tensions in the Middle East further bolstered the USD.
As a result, the GBP/USD pair faced resistance above the 1.3400 mark and was trading just below the 50.0% retracement at 1.3409. The nearest support was found at the 61.8% retracement at 1.3346, with a deeper 78.6% Fibonacci level at 1.3256 expected to attract more interest if the decline persisted. Technical analysis, aided by AI, indicated that the GBP/USD pair remained bearish near-term, with the 100-day Exponential Moving Average at 1.3461.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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