GBPUSD slides below $1.25 ahead of the BoE interest rate decision

• GBPUSD near 50-period SMA resistance at 1.250148 pre-BoE
   
• BoE expected to cut rates by 25bps to 4.50% amid cooling economy
   
• Markets price in 82bps total rate cuts in 2024 (three cuts)
   
• BoE report, MPC minutes, Bailey speech key for market direction
   
• GBPUSD 7-day range forecast: $1.2314 to $1.2657 (72.7% probability)

GBPUSD is trading just below its key resistance level – the 50-period SMA at 1.250148 ahead of the Bank of England's upcoming policy announcement.
 

Investors are expecting a 25-basis point rate cut (4.75% to 4.50%) amid cooling economic activity and easing inflationary pressures in the services sector.
 

Overall, markets are pricing in three rate cuts this year, for a total of 82 basis points.

The BoE's monetary policy report will also be closely watched along with the MPC meeting minutes and Governor Bailey's speech.

Global markets remain uncertain due to escalating US tariff threats, and although the UK is not directly affected by these measures, the US-China trade war could impact global economic momentum.

According to Bloomberg, the potential (72.7% probability) 7-day trading range for the GBPUSD currency pair is between $1.2314 and $1.2657.