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The Bank of England is expected to reduce interest rates for the fifth time in the last 12 months, cutting the Bank Rate from 4.25% to 4% this Thursday.

The move comes amid increasing concerns over a deteriorating labor market—exacerbated by employer tax hikes—and the ongoing U.S. trade war, which continue to weigh on economic growth.

However, the decision isn’t unanimous among the Monetary Policy Committee. While Governor Andrew Bailey and a majority appear inclined to support the cut, some members remain reluctant due to persistent inflationary pressures\

GBP/USD staged a rebound on Wednesday 6/8/2025, climbing above 1.3350 after last week’s steep slide to 15-week lows near 1.3140. This recovery follows a technical rebound from the 200-day Exponential Moving Average (EMA), reinforcing bullish momentum. Currently, the pair is being closely watched ahead of the Bank of England’s expected 25 basis-point rate cut on Thursday.

The exchange rate has advanced in three of the last four trading sessions, marking a roughly 1.75% bounce from recent lows. With support now anchored around the 1.3200 level, the path appears clear for further upside toward the previous swing high in the 1.3600 region.

GBPUSD D1 Chart

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