Forecast for the GBP/USD Pair Ahead of Today’s Bank of England Decision

Sterling Slips Ahead of Bank of England Decision

The British pound fell slightly on Thursday as markets awaited the Bank of England’s monetary policy decision later in the day.

While the Bank of England is widely expected to keep interest rates unchanged, markets will be closely watching the results of the vote and any guidance on the future path of monetary policy.

Recent data showed inflation in the UK slowing to a 15-month low, coming in at 2.6% in June, which is below the Bank of England’s forecast, but rising energy prices have raised concerns that inflationary pressures could return in the coming months.

The Federal Reserve also added to the uncertainty on Wednesday by keeping interest rates unchanged, despite opposition from three members of the Federal Open Market Committee who favored a rate hike.

GBP/USD from a Technical Perspective

The GBP/USD pair is trading near the 1.3350 level, having pulled back slightly today following yesterday’s gains.

Earlier this week, the pair attempted to test the broken price channel levels before rising yesterday.

Currently, I expect the pair to rise toward the 1.3500 level.

Any corrective pullback around the time of the interest rate decision is expected to present an opportunity for medium-term buy positions.