GBP/USD & Bank of England (BoE) Influence💱 Forex•GBP/USD
GBP/USD Slides on Dovish BoE Signals, Faces 200-DMA Test
SentiSignal Editorial TeamFebruary 7, 2026, 12:01 PM152 words6 sourcesAI-Generated · Reviewed by editorial team
GBP/USD
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The GBP/USD pair experienced significant volatility, initially falling sharply due to a perceived dovish shift from the Bank of England (BoE) and rising UK political risks. The BoE lowered the bar for potential easing, cutting inflation forecasts and prompting a surge in bets for a March rate cut – now near 70% according to swaps markets. This led to GBP/USD testing its 200-day moving average around 1.3430. While the Pound Sterling saw a rebound on Friday as the US Dollar retreated, fueled by a risk-on mood, it's still poised for weekly losses. BoE officials, including Huw Pill, acknowledged falling inflation and subdued but positive private sector growth, reinforcing expectations of future rate cuts. The AUD/USD, conversely, climbed as the RBA signaled potential rate hikes. EUR/GBP has jumped to a high of 0.8721, reflecting the Pound's weakness. Despite the short-term recovery, the overall sentiment remains cautious, with analysts anticipating further downside for GBP/USD.
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