The GBP/USD currency pair experienced a 0.30% decline, reaching 1.2520 and slipping below recent lows. Traders are closely monitoring key support levels, particularly the 20-day moving average around 1.2495, with further support anticipated at 1.2457. On the upside, resistance is noted at the 200-day moving average at 1.2540, followed by R1 at 1.2577, and the recent high at 1.2596. Market sentiment surrounding the British pound remains cautious as investors await the outcome of the Bank of England (BoE) meeting. While the BoE is widely expected to maintain interest rates, attention is turning to the press conference for insights into future monetary policy. Recent polling data suggests a growing expectation for a dovish stance from the BoE, adding to the uncertainty in the sterling market.The above levels serve as important reference points for establishing entry and exit points, as well as managing risk in GBP/USD trading strategies. Additionally, heightened attention to these levels ahead of key events, such as central bank meetings, underscores their significance in shaping market sentiment and price action.

Looking ahead, the outlook for the GBP/USD remains influenced by a combination of domestic economic factors, coupled with concerns about the pace of economic recovery in the UK, may continue to weigh on the sterling. Additionally, any shifts in global risk sentiment or developments in US monetary policy could also impact the direction of the currency pair. Traders will likely closely monitor upcoming economic data releases, central bank announcements, and geopolitical events for further clues on the trajectory of the GBP/USD exchange rate.