GBPUSD temporarily recovers following BoE rate decision

Following the recent plunge, the GBPUSD currency pair moderately recovered during early trading on Friday. UK political instability and the Bank of England’s (BoE) latest rate decision sent the pound down to two-week lows near 1.35073.

The technical setup confirms the pair’s attempt to rebound. The price is currently positioned at 1.35650, slightly above the middle

Bollinger Band (1.35595), meaning that it is finding solid ground after the slump and gradually recouping previous losses.

Stochastic lines (%K=28, %D=27) are now approaching oversold territory. Their bullish crossover—when %K climbs above %D—near this zone usually points to potential downtrend’s exhaustion. This may transform market sentiment into a more optimistic one.

In the meantime, the Chaikin Oscillator keeps swimming in the red, signaling seller dominance. However, the pace of its decline is slowing, also hinting at a probable shift in momentum.

Nevertheless, the pound couldn’t breathe out fully after the unexpected BoE monetary decision. With 5 votes against 4, interest rates remained unchanged at 3.75% yesterday. This disposition turned out to be way more dovish than analysts expected (7 vs. 2), signaling officials’ readiness to loosen policy. Traders reacted in the blink of an eye, revising their rate cut predictions for 2026 from 35 to 50 basis points and triggering outflows from the pound. Comments from BoE Governor Andrew Bailey that inflation will reach the 2% target as early as April, well ahead of prior forecasts, fueled expectations of imminent easing, with the first potential move in March.

Take a look at the trading plan down below:

Sell GBPUSD during a technical correction from 1.36000 or at current levels. Place Take profit at 1.34500 and Stop loss at 1.37400.

The forecast is valid between February 6 and February 13, 2026.