GBP/USD price remains under pressure as BoE rate outlook weighs
GBP/USD remains under pressure as traders await BoE Governor Bailey’s speech
The Pound sterling (GBP/USD) remains under pressure, trading around 1.2365, as investors await Bank of England (BoE) Governor Andrew Bailey’s speech later today. The BoE’s recent 25 basis point rate cut to 4.5% has intensified selling pressure on the currency, especially after Monetary Policy Committee (MPC) member Catherine Mann, previously a hawkish voice, called for an even deeper cut.
Mann’s dovish shift has raised concerns over the UK’s economic outlook, as she cited weak demand and cracks in the labor market as key reasons for her stance. The BoE’s guidance remains cautious, with Governor Bailey advocating for a gradual approach to monetary easing. Traders are closely monitoring his speech at the University of Chicago Booth School of Business in London at 12:15 GMT for further clarity on the central bank’s stance.
GBP/USD price dynamics (Jan 2025 - Feb 2025) Source: TradingView.
Technical outlook remains bearish
GBP/USD remains within a 1.2310 - 1.2550 trading range, according to analysts at UOB Group. A tentative buildup in downward momentum suggests that the currency could edge lower, though major support at 1.2310 is unlikely to be tested in the immediate term.
The 14-day Relative Strength Index (RSI) is below 50, reinforcing the bearish sentiment. The 50-day Simple Moving Average (SMA) at 1.2405 acts as minor resistance, with a break above this level needed for upside momentum. If the Pound fails to hold 1.2330, a retest of 1.2310 could be in sight, while resistance at 1.2550 remains a key upside barrier.
Trump’s tariff policy adds to uncertainty
The U.S. dollar remains strong, bolstered by fresh 25% tariffs on steel and aluminum imports imposed by President Donald Trump. The escalating trade war has lifted safe-haven demand for the Greenback, further weighing on the Pound. The Federal Reserve’s delayed rate cut expectations have also supported the dollar, adding to downside risks for GBP/USD.
On the basis of previously analyzed charts, GBP/USD remains vulnerable, with downward momentum likely to persist unless Governor Bailey’s remarks provide a more hawkish outlook. The 1.2405 level remains pivotal, and a failure to reclaim it could push the pair toward 1.2310 in the coming sessions.
