The pound initially fell to 1.2835 due to strong dollar buying and pound selling from the “Trump rally,” but it later rose to the 1.29 mid-range. However, ahead of the BOE meeting, it dropped back to around 1.29. At the meeting, the Bank of England decided to lower the interest rate by 0.25%, as expected. In its statement, the BOE noted the need to “maintain a tight stance for a considerable period” and to “monitor the risk of prolonged inflation, deciding on the appropriate level of tightening at each meeting.” By raising the inflation outlook for 2025-26, the BOE suggested a slower pace of future rate cuts, which encouraged pound buying.
Along with dollar adjustments, the pound climbed from its low of 1.2895, reaching as high as 1.3 dollars. With the 200-day moving average upward trend at the lower 1.28 range remaining untested, the pound rebounded, and this recovery from the previous day’s decline is expected to continue.
Pound-Dollar Forecast Range: 1.3060 – 1.2940
Please note: The above information does not guarantee profits. Make investment decisions based on your own judgment.