- Regarding the Bank of England’s interest rate decision, market attention is particularly drawn towards the voting split among the Monetary Policy Committee members.
- Technical analysis potentially highlights weakening bullish momentum in the GBP/USD pair.
The British Pound has seen a partial retreat against the USD ahead of the Bank of England’s interest rate announcement.
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It’s widely anticipated that rates will remain steady at 5.25%. Consequently, attention is likely to be directed towards the voting split among the nine-member Monetary Policy Committee and the accompanying commentary, as these factors could influence market sentiment. How this split lands could affect the present futures markets predictions that the first UK rate cut will come in September.
If the forecast is pushed back, we could see the 1.2500 psychological level provide support potential for the GBP/USD. The Relative Strength Index (RSI) has recently declined below the 50 level, highlighting a lack of bullish momentum, so we might like to see this pick up also.
Moreover, the GBP/USD has dipped below the 200-day moving average. This could be the first level of resistance to take note of that and could impede any upward trend. After this, levels of resistance the GBP/USD pair could face include the 50-day moving average (DMA) which is close to 1.2600.
