Post #15575

Possibilities for the Pound GBP/USD is ranging near recent highs in thin holiday conditions. A break below 1.3470 would likely open the door for a deeper pullback, while holding above keeps the broader bullish structure intact. GBP has been steady against the dollar, with little fresh news to drive price. The dominant driver remains the BoE decision earlier this month, where policymakers delivered a rate cut but signaled that the pace of easing could slow further — that has helped keep GBP supported. That said, the medium-term picture is more mixed. With the UK labor market weakening, expectations are building for lower inflation ahead, which could give the BoE room to cut more aggressively than markets currently price. Some see as many as three cuts in 2026, a reminder that while GBP is supported near term, longer-term risks still lean dovish. GBP/USD 1H (left) | 1D (right): Above recent highs → trend stays elevated Below 1.3470 → higher-timeframe pullback toward 38.2% / 50% / 61.8% retracements - Alan