The sterling halted losses against the U.S. dollar on Monday, after the sharp losses last week as the BOE policy meeting held unpleasant surprises about the future of monetary policy.
The pound took a breather in calm trading on the GBP/USD today amid the absence of economic data from both economies.
Last week, the BOE opted to leave its borrowing cost at 0.5 percent, yet only one MPC member called for a rate hike while markets predicted at least two members to ask for a rate increase.
The GBP/USD found support at 1.5480 at daily SMA 100, noting that the pair is currently trading around 1.5490.
Amid the absence of important economic data from the U.K. this week, the pair’s movements are likely to be affected by the U.S. dollar on expectations of an interest rate hike in September.