BOE

GBP/USD gives back the advance following the Bank of England (BoE) rate decision as US President Donald Trump announces that 'we have reached the first, historic trade deal since Liberation Day.’

The GBP/USD forecast remains delicately balanced, ahead of key central bank decisions from both sides of the pond. The Federal Reserve and the Bank of England are on the docket, with traders preparing for possible policy divergence.

The Bank of England (BoE) meeting may produce headwinds for the British Pound as the central bank is expected to implement a 25bp rate cut.

EURUSD, GBPUSD Forecast: While the DXY maintains an inverted head-and-shoulders formation, EURUSD and GBPUSD continue to hold their respective reversal patterns — a head-and-shoulders for EURUSD and a double top for GBPUSD — awaiting a key market catalyst to drive directional confirmation.

GBPUSD, Dow Forecast: The BOE holds rates, keeping GBP/USD below 1.30 as markets await the BOE press conference. Meanwhile, the Dow Jones maintains its rebound near 41,800, supported by the Fed's dovish stance.

GBP/USD may struggle to retain the advance from the start of the week should the BoE prepare UK households and businesses for lower interest rates.

GBPUSD, Silver Outlook: GBPUSD remains resilient in its bullish rebound against the US Dollar, despite market expectations of a 25-bps rate cut by the BOE later today. Meanwhile, Silver's haven-driven momentum appears exhausted, similar to Gold.

GBP/USD holds below the 50-Day SMA (1.2511) after failing to test the monthly high (1.2576).

GBP/USD struggles to retrace the decline following the Federal Reserve interest rate decision even as the Bank of England (BoE) keeps the Bank Rate at 4.75%.

Investors are eagerly anticipating what could be the final hurrah for volatility in 2024, with the Federal Reserve, Bank of Japan, as well as the BoE, all poised to reveal their rate decisions and provide outlook for the upcoming year. The GBP/USD forecast remains bearish.

GBPUSD Forecast: the pound’s drop against the dollar’s rally was cushioned at the 1.2480 low, further supported by rate hold expectations given the inflationary risks of UK’s new labor law. However, today’s contracting GDP reading at -0.1% reflects growth concerns and adds complexities to next week’s BOE decision.