GBP/USD Hits 6-Month Low at 1.2980 Pre-BoE; Downside Bias Persists

GBP/USD plunged to a six-month low of 1.2980, declining 0.7% as sterling buckled under pressure ahead of Thursday's Bank of England rate decision. The pound's weakness reflects market concerns over the UK's deteriorating economic outlook, with recent data showing manufacturing PMI contracting to 48.5 and consumer confidence sliding. Dollar strength compounded sterling's woes, with the DXY advancing to 104.30 on safe-haven flows. Technical indicators signal further downside risk, with the pair breaking below the crucial 1.3000 psychological support and 200-day moving average at 1.3045. The RSI reading of 32 suggests oversold conditions but momentum remains bearish. Markets are pricing a 65% probability of a BoE hold, though any dovish tilt could accelerate GBP losses. Immediate support lies at 1.2950, with a break targeting 1.2900. Resistance forms at 1.3020, requiring a catalyst to reverse the entrenched downtrend.