GBP/USD Near Recent Low Below 1.2100 as Bank of England Pauses Rate Hikes

The GBP/USD pair is trading near its recent low, below 1.2100, after the Bank of England surprised markets by pausing its interest rate hikes. This move, the first of its kind since December 2021, has weakened the British Pound (GBP) against the strong US Dollar (USD). The USD Index (DXY), which tracks the USD against other currencies, has reached its highest level since November 2022, thanks to the belief that the Federal Reserve will continue its hawkish stance and possibly raise rates again by the end of the year.

Moreover, concerns about rising borrowing costs and a generally weaker risk sentiment have boosted the USD's safe-haven status, putting pressure on the GBP/USD pair. There are no significant UK economic releases on the horizon, leaving the pair sensitive to USD dynamics, including the upcoming US JOLTS Job Openings data and the US NFP report due later in the week.

GBP/USD continues to experience selling pressure, finding support at the 1.2100 level. The bearish outlook persists and could potentially drive the price towards the historical level of 1.1800, a level not seen since March 23 of this year.

Resistance 3	Resistance 2	Resistance 1	Support 1	Support 2	Support 3
1.2400	1.2290	1.2200	1.2110	1.2000	1.1900