GBP/USD Holds Near April Lows Ahead of Bank of England Decision

GBP/USD is trading near its April lows as markets brace for the upcoming Bank of England monetary policy meeting, which could set the tone for sterling's near-term direction. The pair has been under sustained pressure as traders weigh the likelihood of the BoE maintaining its current rate stance versus signaling future policy adjustments. The proximity to April lows suggests significant technical support is being tested, and a decisive break below could open the door to further downside toward lower support zones. The broader market context includes easing geopolitical tensions from the US-Iran peace deal and falling oil prices, which could influence the BoE's inflation outlook. Lower energy costs may reduce UK CPI pressures, potentially giving the central bank room for a more dovish tone. However, persistent domestic wage growth and services inflation remain hawkish counterweights. Traders should watch for the BoE's forward guidance language and updated economic projections. A hawkish hold could provide relief for GBP/USD, while any dovish pivot may accelerate the pair's decline below current support levels.