Pound Sterling Remain Solid, Awaits for BoE’s Rate Decision.

Key Takeaways:

*British Pound Sterling remains strong against the G7 pairs, eyes on the BoE’s rate decision today. 

*PMI came below the 50 mark, hindering the Pound Sterling’s strength. 

Pound Struggles Near Highs as Dovish BoE Expectations Weigh on Sentiment

The British pound has lost upward momentum after a recent bullish run, as dovish expectations ahead of the Bank of England’s May policy decision have capped further gains. Sterling is now consolidating near its recent highs against its peers, with traders growing cautious amid signs of economic softness.

Latest UK PMI figures fell below the 50 threshold, indicating contraction in economic activity and reinforcing speculation that the BoE may adopt a more accommodative stance. While a potential rate cut could support growth, it poses downside risks to the pound’s valuation.

Technical Outlook

EURGBP, H4

The euro continues to struggle against the pound, with EUR/GBP extending its decline by more than 2.5% from its April peak, as bearish pressure remains firmly in place. The pair briefly broke below the key 0.8490 support level before a modest pullback, yet continues to trade beneath its long-term descending trendline—underscoring prevailing downside momentum.

Technical indicators point to sustained bearish bias. The RSI remains anchored below the 50 threshold, while the MACD continues to hover below the zero line. A decisive move below 0.8490 could reinforce the bearish outlook and open the door for further downside in the sessions ahead.

Resistance level: 0.8560, 0.8650

Support level: 0.8420, 0.8330