GBP/USD Signals Further Losses Ahead of BoE Rate Decision

GBP/USD is showing bearish flag patterns on the daily chart, suggesting potential continuation of recent downward momentum as traders position ahead of the Bank of England's upcoming rate decision. The pair has declined 0.8% over the past week, currently trading near 1.2650, with technical indicators pointing to further weakness. Market participants are closely watching for the BoE's policy stance amid persistent UK inflation concerns and slowing economic growth. The central bank faces a difficult balancing act between controlling inflation and supporting the economy. Technical analysis shows immediate support at 1.2620, with a break below potentially accelerating losses toward 1.2580. Resistance is seen at 1.2700, which has capped recent recovery attempts. The bearish flag formation suggests downside risks remain elevated, particularly if the BoE adopts a more dovish tone than expected or signals a pause in its tightening cycle.