British Pound Forecast: GBP/USD Selloff Stalls Ahead of BoE Meeting
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.
Share this:
British Pound Outlook: GBP/USD
The recent selloff in GBP/USD seems to be stalling as it no longer carves a series of lower highs and lows, but 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.
British Pound Forecast: GBP/USD Selloff Stalls Ahead of BoE Meeting
Keep in mind, GBP/USD cleared the 2024 high (1.3434) as it rallied to a fresh yearly high (1.3445) last week, and the exchange rate may continue to track the positive slope in the 50-Day SMA (1.3021) as it holds above the moving average.
Join David Song for the Weekly Fundamental Market Outlook webinar.
David provides a market overview and takes questions in real-time. Register Here
In turn, GBP/USD may continue to reflect a bullish trend as the ongoing shift in US trade policy drags on the Greenback, and it remains to be seen if the Federal Reserve will further unwind its restrictive policy as the central bank insists that ‘we do not need to be in a hurry to adjust our policy stance.’
UK Economic Calendar
Meanwhile, the BoE is expected to reduce its benchmark interest rate to 4.25% from 4.50% after sitting on the sidelines at its last meeting, and the updates from the central bank may sway GBP/USD should the Monetary Policy Committee (MPC) offer a dovish forward guidance.
With that said, GBP/USD may struggle to retain the rebound from the start of the week should the BoE prepare UK households and businesses for more rate cuts, but the exchange rate may further retrace the decline from the yearly high (1.3445) if the central bank endorses a ‘gradual and careful approach to the further withdrawal of monetary policy restraint.’
GBP/USD Price Chart – Daily
Chart Prepared by David Song, Senior Strategist; GBP/USD on TradingView
- GBP/USD attempts to trade back above 1.3310 (100% Fibonacci extension) as it halts a four-day selloff, with a move/close above 1.3410 (78.6% Fibonacci retracement) bringing the April high (1.3445) on the radar.
- Next area of interest comes in around the February 2022 high (1.3644), but lack of momentum to hold/close above 1.3310 (100% Fibonacci extension) may push GBP/USD towards 1.3210 (50% Fibonacci extension).
- A break/close below the 1.3140 (78.6% Fibonacci extension) to 1.3150 (23.6% Fibonacci extension) region opens up 1.3010 (61.8% Fibonacci extension), with the next area of interest coming in around 1.2900 (23.6% Fibonacci retracement) to 1.2910 (50% Fibonacci extension).
Additional Market Outlooks
Gold Price Falls Toward 50-Day SMA
Canadian Dollar Forecast: USD/CAD Vulnerable to Fresh Yearly Lows
USD/JPY Defends Rebound from Monthly Low Ahead of BoJ Rate Decision
British Pound Forecast: GBP/USD on Cusp of Testing 2024 High
--- Written by David Song, Senior Strategist
Follow on Twitter at @DavidJSong
Related tags:
Open an account in minutes
Experience award-winning platforms with fast and secure execution, and enjoy tight spreads from 0.5 pts on FX and 0.3 pts on indices.
Economic calendar
Web Trader platform
Our sophisticated web-based platform is packed with features.
Related articles
British Pound Technical Outlook: GBP/USD Poised for Breakout Ahead of Fed, BoE 9 15 2026
GBP/USD is locked within a tight technical range, with the Fed and BoE decisions poised to provide the catalyst for the next major move.
GBPUSD Analysis Pound holds firm after BoE decision
The pound sterling has started to show relevant strength against the U.S. dollar. At the moment, GBP/USD has gained slightly more than 1.3% in the short term, reflecting an important buying bias.
British Pound Outlook: GBP/USD Tests Key Support While Fed Fuels Dollar Resurgence 6 18 2026
GBP/USD has dropped into pivotal support on the heels of the Fed & BOE rate decisions. Battle lines drawn on the Sterling charts.
This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.
StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.
In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.
StoneX Financial Pte. Ltd. is not under any obligation to update this report.
Trading CFDs carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit www.forex.com/en-sg/terms-and-policies for the complete Risk Disclosure Statement.