On February 4, GBP/USD is trading near 1.37000 and remains focused on the Bank of England decision scheduled for February 5. The pound is supported by economic indicators that have been more resilient than expected, as well as inflation, which accelerated by the end of 2025, leading the market to allow for a longer pause in rate cuts.
Meanwhile, the dollar has its own drivers: news about the nomination of a new Federal Reserve Chair has reinforced expectations that U.S. rates will be cut more slowly. Additional support for the U.S. currency comes from steady economic data and investor caution amid political headlines, which increases demand for dollar assets.
If the Bank of England keeps rates unchanged without clear signals of imminent tightening, the focus will shift to the interest-rate expectation gap in favor of the U.S. In that case, it will be harder for the pound to hold current levels, and the risk of a decline in GBP/USD remains for the day.
Trading recommendation: SELL 1.37000, SL 1.37150, TP 1.36400
Meanwhile, the dollar has its own drivers: news about the nomination of a new Federal Reserve Chair has reinforced expectations that U.S. rates will be cut more slowly. Additional support for the U.S. currency comes from steady economic data and investor caution amid political headlines, which increases demand for dollar assets.
If the Bank of England keeps rates unchanged without clear signals of imminent tightening, the focus will shift to the interest-rate expectation gap in favor of the U.S. In that case, it will be harder for the pound to hold current levels, and the risk of a decline in GBP/USD remains for the day.
Trading recommendation: SELL 1.37000, SL 1.37150, TP 1.36400
More analytical information and promotions on FreshForex website cutt.ly/LrP6j9qD
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.
More analytical information and promotions on FreshForex website cutt.ly/LrP6j9qD
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.