GBP/USD Consolidates at 1.3070 Ahead of Critical BoE Decision

GBP/USD is trading in a tight range around 1.3070, showing minimal movement ahead of Thursday's Bank of England monetary policy decision. The pair has been capped below the 1.3100 psychological resistance level as traders position cautiously before the event risk. Market consensus expects the BoE to maintain rates at 5.25%, but focus will be on the voting split and forward guidance amid persistent UK inflation concerns. Recent UK economic data has been mixed, with services PMI beating expectations at 53.2 while manufacturing remains in contraction territory. Technical indicators suggest consolidation, with the 50-day moving average at 1.3085 acting as immediate resistance. Support is established at 1.3050, coinciding with the 200-hour moving average. A hawkish surprise from the BoE could propel the pair toward 1.3150, while dovish commentary might trigger a test of 1.3000. Implied volatility has risen to 8.2%, indicating expectations for increased movement post-announcement.