GBP/USD Stuck Near Key Level as BoE Decision Looms
The GBP/USD pair is trading around 1.3311 against the dollar on Tuesday, down roughly 0.08% on the session and holding a defensive posture near the 1.3300 handle through the European morning.
The pair's movement has been a round trip this month, with cable opening July at 1.3250, falling to a monthly low of 1.3221, then breaking above 1.34 for the first time in a year on July 10 and running to a July high of 1.3558.
The move above 1.3500 lacked momentum to establish a lasting breakout, and the retracement has been methodical rather than violent. Sterling now sits roughly 3.7% below its January high, which was printed at 1.3811 on some series and as high as 1.3867 on others.
The UK's monetary policy committee is expected to hold interest rates steady at 3.75% Thursday, with markets pricing in two rate increases by March 2027. The Bank of England's decision will be closely watched for the tone, particularly Governor Andrew Bailey's message, as the economy shows signs of slack and household inflation expectations have recently eased.