GBP/USD Weakens Below 1.31 After BoE's Dovish Policy Hold

GBP/USD is trading slightly lower near 1.3100 on Friday, with sterling under pressure following the Bank of England's dovish stance in maintaining current policy settings. The pound's weakness reflects market disappointment over the lack of hawkish signals from the BoE, which kept interest rates unchanged while adopting a cautious tone on future policy adjustments. The central bank's communication suggested concerns about economic growth are balancing inflation considerations, dampening expectations for near-term rate hikes. Technical indicators show the pair struggling to hold above the psychologically important 1.31 level, with immediate support at 1.3080 and resistance at 1.3130. The dovish hold has shifted sentiment against sterling, as traders had anticipated more aggressive policy normalization. Looking ahead, GBP/USD faces headwinds unless upcoming UK economic data provides compelling reasons for the BoE to adopt a more hawkish stance.