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Trading this pair today requires a healthy awareness of what might happen at midday when the Bank of England (BoE) announces. If we get no move, or only a 25 bps cut, which is largely priced in, then GBP/USD may actually continue to move higher, with an initial move back to $1.33 (yesterday’s high) and then on to $1.3465 and the bottom end of the 24/27 June gap lower.
A bigger cut to rates, and even some form of stimulus (although unlikely this early in the game) would see sterling weaken versus the US dollar, pushing below yesterday’s low at $1.31 and then on towards $1.2850.