Photo by Colin Watts on Unsplash 
 

GBP/USD grappled with a near-term technical floor on Wednesday, finding some breathing room just north of 1.3000. A thin, dead-cat-style bounce has greeted Cable traders following several weeks of one-sided declines. The Bank of England (BoE) and its latest interest rate decision looms large on Thursday, and volatile private datasets have taken precedence in US data flows as the US government shutdown keeps official economic data sources dark.

The Cable pair heads into Thursday’s market sessions battling near the 1.3050 level. GBP/USD is down a little over 3% from its last swing high near 1.3470 in mid-October, having lost ground for all but two of the last 13 consecutive trading days.

It’s been a quiet week on the UK side of the economic data docket in the runup to the BoE’s latest rate call. However, significant shifts in the BoE’s interest rate stance are not expected. The Monetary Policy Committee (MPC) is expected to vote six-to-three to keep interest rates unchanged. The addition of another rate cut vote will be of some note for particularly attentive central bank policy wonks; however, meaningful changes in the BoE’s interest rate stance are unlikely to materialize with the UK’s headline inflation rate standing at 3.8% as of August, nearly double the BoE’s preferred 2% target band.

GBP/USD daily chart
 

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