- GBP/USD weakens near 1.3605 in Monday’s early European session.
- The major pair keeps the bullish bias in the medium term above the 100-day EMA.
- The initial support level emerges at 1.3580; the immediate resistance level to watch is 1.3870.
The GBP/USD pair trades on a softer note around 1.3605 during the early European session on Monday. Growing expectation of the Bank of England’s (BoE) interest-rate cut weighs on the Pound Sterling (GBP) against the Greenback.
The BoE was widely expected to leave interest rates unchanged at 3.75%, but the number of Monetary Policy Committee (MPC) members supporting keeping rates unchanged was lower than the seven expected by markets.
“We continue to expect the next rate cut in March. After that, we think the BOE will deliver a prolonged pause before resuming policy normalization in early 2027 (we see a terminal rate of 3.00% by mid-2027),” said Dani Stoilova, UK and Europe economist at BNP Paribas Markets 360.
Technical Analysis:
In the daily chart, GBP/USD holds above the100-day EMA, preserving a bullish bias. Dips would find demand while above this average. Bollinger Bands show price tracking above the middle band as the envelopes widen, pointing to rising momentum. RSI at 52 (neutral) stabilizes above the 50 line, keeping a modest upside tilt.
Maintaining traction over the 20-day middle band at 1.3580 would keep the topside in focus, with the upper Bollinger Band capping at 1.3870. A pullback below that pivot would expose 1.3290 at the lower band as the next sizeable support.
