GBP/USD Bounce Potential, BOE on Tap

As of writing on Monday morning, traders are pricing in about a 60% chance that the Bank of England will cut interest rates at its meeting on Thursday, leaving meaningful doubt on how the meeting will ultimately resolve.

Meanwhile, GBP/USD remains within its 2-week bearish channel, though it is bouncing back to previous-support-turned-resistance near 1.2850. For this week, that will be a key bull/bear line, with a breakout above it setting the stage for a potential continuation toward 1.29+, whereas bears will maintain the upper hand below that level.

-MW