GBP/USD recovers as traders await Fed and Bank of England policy decisions

GBP/USD has staged a recovery as markets position ahead of crucial central bank decisions from both the Federal Reserve and Bank of England. The pound's rebound reflects reduced selling pressure and cautious optimism about UK economic resilience despite ongoing challenges. US Treasury yields across the curve (2-year, 10-year, and 30-year) remain pivotal for dollar direction, with recent stability supporting risk sentiment. The Bank of England faces a delicate balancing act between persistent inflation concerns and growth headwinds, while the Fed navigates similar challenges. Technical analysis shows GBP/USD reclaiming key levels, though resistance remains at recent highs. Support has formed at psychological levels, providing a base for potential further gains. Traders should monitor upcoming UK economic data releases and any central bank communication for signals on monetary policy divergence between the two economies.