GBP/USD trades cautiously above 1.3310 as markets brace for today’s Bank of England meeting. A 25bps cut to 3.75% is widely expected, with a tight 5-4 vote likely, while guidance signaling gradual further easing could pressure the pound on crosses, BBH FX analysts report.

BoE widely expected to deliver 25bps cut to 3.75%

"GBP/USD is down but trading above yesterday’s low around 1.3312. The Bank of England (BOE) is widely expected to resume easing with a 25bps cut to 3.75%. The Monetary Policy Committee (MPC) vote split may be tight: 5 in favor of a cut versus 4 supporting no change."

"More importantly, the BOE will likely stress again that 'if progress on disinflation continues, Bank Rate is likely to continue on a gradual downward path'. That would undermine GBP on crosses."