Pound Sterling losses slow as BoE rate decision looms

💡 DMK Insight

GBP/USD’s pullback to 1.3646 signals caution ahead of the BoE meeting this Thursday. Traders are likely recalibrating positions after the recent high of 1.3847, which could indicate profit-taking or a shift in sentiment. The upcoming Bank of England decision is pivotal; any hints of tightening could push the pair back toward that August high, while dovish signals might see it test lower support levels. Keep an eye on the 1.3600 mark as a potential pivot point. If it breaks, we could see a deeper retracement. Conversely, a strong bullish reaction from the BoE could reignite upward momentum, making the 1.3847 level a key resistance to watch. Here’s the thing: while the mainstream narrative focuses on the BoE’s decision, the market’s reaction to any unexpected news could create volatility. Institutions and retail traders alike should be prepared for rapid shifts in sentiment, especially if economic indicators leading up to the meeting show surprising strength or weakness.