![\"\"](\"https:\/\/insights.onequity.com\/wp-content\/uploads\/2026\/02\/05Feb-ING.png\")
Against this backdrop, we expect the Bank of England to continue cutting rates over the course of the year, though not at today\u2019s meeting. Market consensus anticipates at least 50 bps of additional easing, with the first move potentially as early as March, provided incoming data confirm the disinflation trend. UK CPI releases will therefore become a critical data point to monitor.<\/p>\n\n\n\n
TECHNICAL ANALYSIS<\/h3>\n\n\n\n
Following the late-January rally that lifted GBP\/USD from 1.3400 to 1.3870\u2014largely driven by U.S. dollar weakness\u2014the pair has come under renewed pressure, retracing approximately 1.61% as of last night\u2019s close. A technical rebound in the U.S. dollar has been a key driver, with the Dollar Index recovering from its January 27 low of 95.36 to the 97.50 area, where it trades this morning.<\/p>\n\n\n\n
Given markets\u2019 forward-looking nature, expectations surrounding the Bank of England\u2019s policy path\u2014outlined above\u2014are also likely contributing to the recent price action.<\/p>\n\n\n\n From a technical standpoint, GBP\/USD broke above a descending trendline on January 23, stalled, and now appears to be undergoing a textbook pullback. The primary target aligns closely with this morning\u2019s low near 1.3810. Beyond that, two additional areas of interest stand out at 1.3660\u2014near today\u2019s opening level\u2014and 1.3580.<\/p>\n\n\n\n While not visible on the current chart, the 1.4250 area remains a significant long-term resistance and upside reference. The pair came close to this level during the rally that began in April 2025 from the 1.2150 area (with the long-term trendline originating from that period still intact). Momentum indicators are now turning lower, with RSI trending down and the MACD histogram crossing below its signal line today.<\/p>\n\n\n\n Although other major central banks may also move toward more accommodative policy later this year, we believe the Bank of England could act more aggressively. As a result, we do not rule out a deeper extension of the current GBP\/USD correction beyond today\u2019s retest of the former downtrend. Key levels to monitor are the psychological 1.35 handle and, more importantly, the 1.34 area. The expected time horizon for such a move is several weeks.<\/p>\n","protected":false},"excerpt":{"rendered":" Today marks a key policy day, with interest rate decisions due from both the European Central Bank and the Bank […]<\/p>\n","protected":false},"author":8,"featured_media":104002,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[2932],"tags":[1044,1217,1042,1218],"class_list":["post-108604","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technical","tag-boe","tag-cable","tag-gbpusd","tag-usdx"],"acf":[],"yoast_head":"\n![\"\"](\"https:\/\/insights.onequity.com\/wp-content\/uploads\/2026\/02\/05Feb-GBPUSD.png\")