GBPUSD found intermediate lows at 1.3140, losing close to 7 handles since its June 30 highs.
The pound had seen a huge uptrend in 2025, with a 13.57% increase from 1.21, as the year commenced, to its recent top at 1.3790.
July changed Forex markets consequently with the Dollar Index retaking some of what it had lost through the first half – After the injurious US Non-Farm Payrolls report from last Friday, the Greenback saw some of its momentary strength evaporate and which allowed the GBP to take a breather from strong selling flows.
The Bank of England began a non-continuous rate-cutting cycle, taking their benchmark rate from 5.25% to the current 4.25%.
The Central Bank has struggled with persistently high inflation, in both goods and services sectors, prompting a cautious dovish stance.
However, with the degrading global outlooks and some government mess-ups, Markets have priced a 96% chance of a 25 bps cut for the upcoming meeting.
There is still some uncertainty regarding how dovish the communications from the BoE will be, which will impact the outlook for the pair.
In the waiting for the Thursday meeting (decision released at 7:00 A.M. ET), let’s have a look at the Technicals for the pair.