GBP/USD Slips Lower as BoE Decision Looms Amid Strong US Dollar
The GBP/USD pair has retreated from its weekly high around 1.3385-1.3390 as it meets with fresh supply and trades lower near 1.3350 ahead of the Bank of England's (BoE) decision.
Following the previous day's decline, the US Dollar (USD) has regained positive traction due to rapidly changing inflationary dynamics caused by volatile oil prices, keeping US Federal Reserve rate hike bets firmly on the table.
The safe-haven Greenback is also being underpinned by escalating US-Iran tensions. However, traders are opting to wait for the BoE decision and important US macro data before placing trades.
From a technical perspective, the GBP/USD pair's recent recovery from its lowest level since July 2 might have run out of steam as it faced rejection near the 100-period Simple Moving Average (SMA) on the 4-hour chart.