GBP/USD breaks below 1.3050 on dovish BoE expectations and USD strength

GBP/USD has declined sharply during Thursday's London session, falling 0.5% to break below the psychological 1.3050 support level before finding mild buying interest near 1.3030. The pound's weakness stems from growing market expectations for a more dovish Bank of England stance, with traders pricing in potential rate cuts amid slowing UK economic growth. Simultaneously, the US dollar continues to strengthen on robust economic data and hawkish Federal Reserve positioning. The pair's breakdown below 1.3050 marks a significant technical development, potentially signaling a shift from the recent consolidation phase to a more pronounced downtrend. Near-term resistance now sits at the broken 1.3050 level, while support emerges around 1.3000, a key psychological barrier. The bearish momentum could accelerate if upcoming UK economic data disappoints or if the BoE signals a more accommodative policy stance, potentially driving the pair toward the 1.2950 support zone.