GBP/USD steady ahead of BOE decision; EUR/USD awaits ECB policy

GBP/USD holds at 1.2650 ahead of the Bank of England's rate decision at 12:00 GMT, with markets expecting a 7-2 vote to maintain rates at 3.75%. The pound has shown resilience despite dovish expectations, trading within a tight 20-pip range during early European hours. EUR/USD consolidates near 1.0820 before the ECB's policy announcement at 13:15 GMT, with traders anticipating guidance on the pace of future rate cuts. Both central banks face the challenge of balancing persistent inflation concerns against slowing economic growth. Technical indicators suggest GBP/USD faces resistance at 1.2680 (50-day MA) and support at 1.2620, while EUR/USD must break above 1.0850 to challenge recent highs. Governor Bailey's press conference at 12:30 GMT and President Lagarde's remarks at 13:45 GMT will be crucial for near-term currency direction, particularly regarding inflation outlooks and policy trajectories.