GBP/USD Consolidates Near Key Levels Ahead of Bank of England Decision

GBP/USD is trading in a tight consolidation range as market participants adopt a cautious stance ahead of the upcoming Bank of England rate decision. The pair has shown limited directional conviction, with price action hovering near recent support and resistance zones as traders await clarity on the BoE's monetary policy trajectory. Market expectations remain divided on whether the central bank will hold rates steady or signal a shift in its forward guidance, given the UK's mixed economic backdrop of persistent inflation alongside slowing growth. The pound has shown resilience in recent sessions, supported by hawkish rhetoric from select MPC members, though uncertainty around the decision has capped upside momentum. Key technical levels include resistance near recent session highs and support at the lower bound of the consolidation range. A hawkish hold or surprise rate action could trigger a breakout in either direction. Traders should prepare for heightened volatility around the announcement and subsequent press conference.