FxWirePro: GBP/USD uptrend loses steam, remains on bullish path

• GBP/USD initially gained but gave ground on Wednesday as investors awaited the Bank of England's monetary policy decision later this week.

• British interest rates are likely to fall further this year, but the BoE might be vague on Thursday about when or by how much it will cut borrowing costs, as it awaits a clearer picture on inflation. The BoE is expected to keep its benchmark borrowing costs unchanged at 3.75% on Thursday.

• Traders priced in 35 bps of BoE rate cuts by year-end, implying one 25 bps move and a 40% chance of an additional cut. ,  

On the data front, S&P Global UK Services Purchasing Managers' Index rose to 54.0 in January, the highest since August 2025, up from December's 51.4.

•   Immediate resistance is located at 1.3732(Daily high), any close above will push the pair towards 1.3836(23.6%fib)  

•  Strong support is seen at 1.3652(50%  fib) and break below could take the pair towards 1.3566(SMA 20).

  Recommendation: Good to buy around 1.3650 with stop loss of 1.3580 and target price of 1.3760