GBP/USD Technical Outlook: BoE Rate Decision in Focus

GBP/USD is consolidating in a tight range between 1.2690 and 1.2790 as market participants await the Bank of England rate decision on Thursday.

Technical picture: The pair is trading above the 200-day moving average but below the key 1.2800 resistance. A sustained break above would target 1.2870 and then the 2024 high near 1.2970.

Fundamentals: UK CPI has been stickier than expected, which could push the BoE to maintain a hawkish tone even if it keeps rates on hold. Watch for the vote split — a 6-3 hold would be more hawkish than a 7-2.