Pound Sterling Price News and Forecast: Sinks as BoE delivers dovish hold, April cut fully priced

💡 DMK Insight

The GBP’s sharp decline against the USD signals serious concerns about the UK’s economic outlook. The Bank of England’s decision to maintain rates while hinting at potential easing has traders spooked. This dovish stance comes at a time when the US economy is showing resilience, as evidenced by the recent jobs data, even if it was underwhelming. The GBP/USD trading at 1.3529 indicates a loss of confidence, and traders should be wary of further downside. Key support levels to watch are around 1.3500; a break below could trigger more selling pressure. On the flip side, if the GBP manages to hold above this level, it might attract some bargain hunters. Keep an eye on upcoming economic indicators from both the UK and the US, as they could provide further direction. The market’s reaction to any signs of economic recovery in the US or additional dovish signals from the BoE will be crucial in shaping the GBP’s trajectory in the near term.