FX.co ★ Death-X-PK | GBP/USD

GBPUSD M-30 Time Frame Update The GBP/USD pair attracted follow-through sellers for the second day in a row on Thursday, falling further from its highest level since September 2021, around 1.3870, reached last week. The negative trend is fueled by a stronger US dollar (USD), which pushes spot prices to around 1.3600, a nearly two-week low during the early European session as traders anticipate the Bank of Englands (BoE) policy statement. The UK central bank is largely expected to keep benchmark interest rates unchanged at 3.75% despite rising inflation, which stayed above the BoEs 2% objective in December. Traders, on the other hand, are still pricing in the potential of the BoE cutting borrowing prices in 2026, citing evidence of a worsening labor market. In fact, the UK unemployment rate stayed at a four-year high of 5.1% in the three months ending in November, while the number of employed persons declined by 43,000 in December. Furthermore, slowing wage growth supports the need for additional BoE easing. Heading into the important central bank event risk, GBP bulls choose to sit on the sidelines as the USD recovers from a four-year low. US President Donald Trumps appointment of Kevin Warsh as the next Federal Reserve (Fed) chairman has sparked speculation that the central bank will be less dovish than predicted. Furthermore, heightened market volatility and Fed Governor Lisa Cooks hawkish comments, which stated that risks are skewed toward higher inflation, pushed the safe-haven greenback to a nearly two-week high, putting negative pressure on the GBP/USD pair. However, any major USD rise appears difficult in light of the US central banks expected two more interest rate cuts in 2026.