GBP Rebounds from July 30 Lows as Traders Await BoE Decision

The British Pound has rebounded from its lowest level since July 30 against the US Dollar, reaching the 1.3400 mark as traders await the Bank of England's policy update.

Despite a three-day losing streak, the GBP/USD pair staged a modest recovery, and spot prices seem to be capitalizing on the momentum beyond the 1.3400 level.

The UK central bank is expected to keep interest rates steady in its decision later today, but market players are pricing in at least one 25-basis-points rate hike by the BoE in 2026 amid inflation risks stemming from higher energy prices.