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GBP/USD climbs above 1.29 after Bank of England holds rates
James Whitfield7 August 20264 min read
Sterling rallied as the BoE kept rates unchanged but signaled a more cautious, data-dependent path forward.
The British pound strengthened against the dollar on Thursday after the Bank of England left interest rates unchanged, matching consensus forecasts.
While the decision itself was expected, the accompanying statement struck a more cautious tone than markets had priced in, tempering bets on near-term cuts.
GBP/USD pushed through resistance at 1.29, with traders citing reduced divergence expectations between the BoE and the Fed.
Attention now turns to upcoming UK growth data, which could shape the next leg of the pair's move.
Key Takeaways
- The BoE held its benchmark rate steady, in line with expectations.
- Governor's comments were read as less dovish than markets anticipated.
- GBP/USD gained over 60 pips, breaking above the 1.29 handle.
- Next catalyst: UK GDP data due later this month.
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