GBP/USD Turns Bullish as BoE Shift and Dollar Weakness Support Breakout

GBP/USD is turning more bullish after breaking its downtrend. The Bank of England surprised markets with a 9–0 decision to hold rates, showing it is now more focused on inflation than slowing growth. This led markets to quickly price in up to three possible rate hikes.

At the same time, oil prices dropped sharply, which helped lower US yields and weakened the dollar. Better overall market sentiment, supported by easing geopolitical tensions, also helped the pound move higher.

From a technical view, the pair has broken resistance and momentum is improving, which suggests selling pressure is fading. But confirmation is still needed. If the price holds above the 200-day moving average, it could move higher. If not, it may pull back toward 1.3350 or even 1.3200.

GBP/USD Daily Chart