GBP/USD faces pressure as BOE rate cut timeline shifts to November

GBP/USD has weakened 0.2% to 1.2935 following Goldman Sachs' revised Bank of England rate forecast, removing their September cut prediction. The investment bank now anticipates sequential rate reductions from November through March 2026, targeting a terminal rate of 3.00% from the current 5.25%. This represents a more gradual easing cycle than previously expected, with the first cut still anticipated in August. The revised timeline suggests the BOE remains cautious about persistent UK inflation pressures despite recent moderation. Markets have adjusted expectations accordingly, with sterling finding temporary support around the 1.2920 level. Immediate resistance sits at 1.2965, with a break below 1.2920 potentially opening the path to 1.2880. Traders should monitor upcoming UK inflation data and BOE communications for further directional cues on the pound's trajectory.