GBP/USD stalls below 1.3700 as markets await BoE rate decision

💡 DMK Insight

GBP’s dip below 1.3700 is a signal of uncertainty ahead of the BoE’s decision. With a 0.23% loss, traders are clearly cautious, reflecting broader market anxieties about potential rate changes. The BoE’s stance could either reinforce the bearish trend or provide a surprise boost, depending on their outlook on inflation and economic recovery. If the BoE hints at a more hawkish approach, we might see a quick rebound above 1.3700, but if they maintain a dovish tone, further declines could be on the table. Watch for key support around 1.3650; a break below that could trigger more selling pressure. On the flip side, if the USD weakens due to external factors like geopolitical tensions or economic data misses, GBP could find some strength. Keep an eye on correlated assets like EUR/USD, as movements there could also influence GBP’s trajectory. The immediate focus should be on the BoE’s announcement, scheduled for later this week, which will likely dictate short-term trading strategies.