GBP/USD fell sharply on Thursday as sterling attracted sellers ahead of the Bank of Englands policy decision. Markets price in a 94% chance the BoE will cut rates by 25 basis points to 4.5% on Thursday,

The GBP/USD exchange rate pulled back slightly after the Federal Reserve interest rate decision and US GDP data. It dropped to a low of 1.2400, down from this week’s high of 1.2500 as focus shifts to the upcoming US personal consumption expenditure (PCE) data and Bank of England (BoE) decision.

Sterling fell against the dollar on Thursday, on track for its biggest daily drop in about a month, as investors awaited the outcome of the Bank of England's meeting, at which the central bank is widely expected to cut interest rates.

GBP/USD started strong on Tuesday but gave up some earlier ground as optimism around Trump easing tariffs faded. Looking ahead, market participants are awaiting the Bank of Englands policy meeting later this week.