GBP/USD Outlook: Rally continues as BoE rate shift and oil price turnaround coincide

GBP/USD Surges After Breaking Downtrend Resistance

The GBP/USD currency pair experienced a strong upward reversal on Thursday, overcoming its previous downtrend resistance. This move was fueled by a significant shift in UK interest rate expectations, a notable turnaround in energy prices, and a late boost in market risk sentiment.

The rally began following the Bank of England's latest decision. While the central bank kept rates steady at 3.75%, the market was caught off guard by a unanimous 9–0 vote, as most analysts had anticipated a 7–2 split. This marks a departure from the previous 5–4 vote, where concerns about slowing economic growth were more prominent. The latest outcome indicates that inflation risks, particularly those linked to the recent energy price surge, have now taken precedence over growth worries.