Cable Volatility Builds as BoE-Fed Policy Paths Diverge

GBP/USD is coiling within a defined Fibonacci retracement band as policy divergence between the Bank of England and the Federal Reserve intensifies. The BoE's expected hold, despite inflation at 2.9%, contrasts with the Fed's more assertive quarter-point move to a 3.75%-4.0% range.

Candlestick structure on the daily chart shows a series of dojis clustering near the 61.8% retracement level, signalling exhaustion of the recent trend leg. A decisive close beyond this zone, paired with rising volume, would validate the next directional leg.

Momentum readings remain mixed, with RSI hovering below overbought thresholds and MACD flattening, reinforcing the case for a volatility expansion rather than a stable trend. Traders are watching for a breakout confirmation candle to align technical and macro signals.