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After falling from the crucial resistance level of 1.1350 in the early Asian session, the GBP/USD pair is presenting a disappointing performance. The cable is bouncing within a narrow range of 1.1250-1.1266 and the volatility contraction pattern is anticipated to continue ahead of the PMIs report. Previously, the asset returned strongly after feeling a substantial purchasing demand near 1.1200. The decrease from 1.1350 is a corrective move that appears to be coming to an end soon, after which an upward trip will continue.

After the release of the Bank of England's interest rate decision, the pound bulls exhibited erratic volatility (BOE). Governor of the Bank of England Andrew Bailey raised interest rates by 50 basis points (bps) and increased the terminal rate to 2.25 percent. This is the highest cost of borrowing since 2008.

Investors should be aware that the UK economy is suffering headwinds from rising pricing pressures, but has not adopted an aggressive monetary policy stance. Poor economic fundamentals, sensitive labor market circumstances, and a dismal labor market index are the rationale for maintaining calm. The lack of assistance from domestic economic triggers prevented BOE policymakers from hesitating while raising interest rates.

In the future, the S&P Global PMI statistics for the United Kingdom will dominate the news cycle. A rise in Manufacturing PMI is anticipated, as the latest economic data is anticipated to be 47.5 compared to 47.3 in the previous edition. While the Services PMI is anticipated to decrease to 50.0 from the previous level of 50.9.

In the meantime, the US dollar index (DXY) is experiencing a fall in buying demand as the influence of the Federal Reserve's (Fed) extraordinarily aggressive stance has begun to fade. Now, investors are focusing on the PMI data, which is anticipated to exhibit a mixed performance. A preliminary assessment indicates that the Manufacturing PMI will softly land at 51.1, while the Service PMI will dramatically improve to 45.

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