GBP/USD Stabilizes at 1.3050 Despite UK Inflation Concerns

GBP/USD consolidated around 1.3050 after halting a three-day decline, though persistent UK inflation concerns cap upside potential. The pair found support at the 50-day moving average (1.3040), bouncing 0.2% from session lows. UK inflation expectations remain elevated at 3.2%, well above the Bank of England's 2% target, complicating the central bank's policy outlook. Markets price a 65% probability of a BOE rate hold at the November meeting, compared to 45% last week. Sterling faces additional pressure from weakening UK economic data, with PMI readings suggesting slower growth momentum. Technical resistance emerges at 1.3085 (previous support), while a break below 1.3040 could accelerate losses toward 1.3000. Traders await Thursday's UK GDP data and Friday's US employment report for directional catalysts. The pound's near-term trajectory depends heavily on relative monetary policy expectations between the BOE and Fed.