The BOE faces a pivotal moment as it prepares to announce its latest interest rate decision.
With MPC members split between hawkish concerns about stubborn inflation and dovish worries over a weakening job market, expectations are swirling about the path forward.
Will the BOE signal a pause after this cut, or will inflation surprises force a more cautious, hawkish stance going into the end of the year?
Traders are watching for clues in the updated forecasts, as even a minor shift could spark major volatility in GBP/USD.
If the BOE sounds hawkish—maybe they raise their inflation forecasts, or the vote split shows strong resistance to further cuts, or they signal a pause in easing—then GBPUSD might have found a bottom for now.
On the flip side, if the BOE puts more emphasis on economic risks, reduces its GDP outlook, or if the vote split shows a strong push for even bigger cuts, then the pound could come under pressure.
On the charts, Cable is clinging to 1.3375, with a potential developing head and shoulders pattern threatening a deeper move lower if the neckline breaks.
Will the upcoming BOE decision be the make-or-break catalyst for the pound?
This content is not directed to residents of the EU or UK. Any opinions, news, research, analyses, prices or other information contained on this website is provided as general market commentary and does not constitute investment advice. ThinkMarkets will not accept liability for any loss or damage including, without limitation, to any loss of profit which may arise directly or indirectly from use of or reliance on such information.
With MPC members split between hawkish concerns about stubborn inflation and dovish worries over a weakening job market, expectations are swirling about the path forward.
Will the BOE signal a pause after this cut, or will inflation surprises force a more cautious, hawkish stance going into the end of the year?
Traders are watching for clues in the updated forecasts, as even a minor shift could spark major volatility in GBP/USD.
If the BOE sounds hawkish—maybe they raise their inflation forecasts, or the vote split shows strong resistance to further cuts, or they signal a pause in easing—then GBPUSD might have found a bottom for now.
On the flip side, if the BOE puts more emphasis on economic risks, reduces its GDP outlook, or if the vote split shows a strong push for even bigger cuts, then the pound could come under pressure.
On the charts, Cable is clinging to 1.3375, with a potential developing head and shoulders pattern threatening a deeper move lower if the neckline breaks.
Will the upcoming BOE decision be the make-or-break catalyst for the pound?
This content is not directed to residents of the EU or UK. Any opinions, news, research, analyses, prices or other information contained on this website is provided as general market commentary and does not constitute investment advice. ThinkMarkets will not accept liability for any loss or damage including, without limitation, to any loss of profit which may arise directly or indirectly from use of or reliance on such information.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.