The currency pair trades lower as traders await the Bank of England’s policy announcement and key US economic data.
The GBP/USD pair fell to the mid-1.3300s on Thursday, retreating from a weekly high near 1.3390 as the US Dollar regained strength. A firmer USD, driven by shifting Fed rate hike expectations and rising US-Iran tensions, weighed on the pair.
Technical indicators suggest caution, with the pair’s recovery stalling near the 100-period SMA on the 4-hour chart. The RSI at 55 and a positive MACD hint at improving momentum, though a break above 1.3385 is needed to confirm further upside.
Traders remain on hold ahead of the BoE’s rate decision and upcoming US macroeconomic releases, which could dictate near-term direction.