The GBP/USD exchange rate continues its downward trend following last Friday’s discouraging UK GDP data, as traders now await critical decisions from the Federal Reserve and Bank of England. The pair has retreated to a low of 1.2630 on Monday, a significant drop from this month’s high of 1.2810.

This situation highlights growing concerns regarding the strength of the UK economy and its influence on monetary policy. Traders must stay alert for any changes in the Fed and BoE’s policy directions, which can significantly determine the GBP/USD exchange rate.

As analysts digest the economic indicators and prepare for the central banks’ announcements, expect heightened volatility. Understanding these dynamics will be crucial for making informed trading decisions in the forex market.