{"id":31249,"date":"2026-03-20T20:58:25","date_gmt":"2026-03-20T20:58:25","guid":{"rendered":"https:\/\/www.vtmarketsglobal.com\/en\/uncategorized\/31249\/"},"modified":"2026-03-20T20:58:25","modified_gmt":"2026-03-20T20:58:25","slug":"following-a-bank-of-england-driven-surge-gbp-usd-pulled-back-trading-near-1-3380-down-0-39","status":"publish","type":"post","link":"https:\/\/www.vtmarketsglobal.com\/en\/live-updates\/31249\/","title":{"rendered":"Following a Bank of England-driven surge, GBP\/USD pulled back, trading near 1.3380, down 0.39%"},"content":{"rendered":"GBP\/USD fell on Friday and traded near 1.3380 at the time of writing, down 0.39% on the day. The drop followed a strong rally on Thursday after the Bank of England decision.\n\nThe move lower came as the US Dollar regained some strength, despite wider markets being shaped by tighter pricing of global monetary policy. This led to a corrective pullback in the pair.\n\n<h3>Bank Of England Holds Rate<\/h3>\nThe Bank of England left its policy rate unchanged at 3.75%, in line with expectations. However, the vote was unanimous at 9-0 to hold, compared with forecasts of a 7-2 split.\n\nThe latest decision contrasted with the previous close 5-4 outcome. The Bank said it could act if inflation stays persistent.\n\nWe remember that hawkish surprise from the Bank of England back in 2025, when the unanimous 9-0 vote to hold rates signaled a deep commitment to fighting inflation. That move caught many off guard and set a precedent for the bank\u2019s cautious stance. This history reminds us that the BoE is willing to delay policy shifts until it is absolutely certain inflation is contained.\n\nFast forward to today, March 20, 2026, and we see GBP\/USD trading near 1.2850 with a similar dynamic at play. UK inflation, while down from its peaks, remains sticky at 2.8% according to the latest ONS figures, which is still well above the BoE&#8217;s 2% target. This persistent inflation explains why the BoE is holding its main rate at 4.5% and is reluctant to signal the start of an easing cycle.\n\n<h3>Trading Implications For Sterling<\/h3>\nGiven the discrepancy between market hopes for rate cuts and the BoE\u2019s stubborn caution, volatility in the pound is likely to increase. Derivative traders should consider buying GBP\/USD straddles or strangles with expirations in the next two to three months to profit from sharp price moves around upcoming inflation reports and BoE meetings. Futures markets are currently pricing in at least two rate cuts by the end of the year, a view that seems overly optimistic given the central bank&#8217;s commentary.\n\nThis contrasts with the situation in the United States, where core inflation has fallen more convincingly to 2.5%, giving the Federal Reserve a clearer path to begin easing policy. This policy divergence should provide a floor for the pound against the dollar, making limited-risk bullish strategies attractive. Therefore, positioning through GBP\/USD bull call spreads could be a prudent way to capitalize on potential sterling strength if the BoE continues to hold rates longer than the Fed.\n\n<b><a href=\"https:\/\/www.vtmarkets.com\/trade-now\/\">Create your live VT Markets account<\/a>\u00a0and\u00a0<a href=\"https:\/\/myaccount.vtmarkets.com\/login\">start trading<\/a>\u00a0now. <\/b>\n<p>\r\n\r\n<p><strong>Start trading now &#8211; Click <a href=\"https:\/\/www.vtmarketsglobal.com\/en\/trade-now\/\">here<\/a> to create your real VT Markets account <\/strong> <\/p>\r\n<!-- \/wp:post-content -->","protected":false},"excerpt":{"rendered":"<p>GBP\/USD dropped to 1.3380 as dollar strengthened; BoE held 3.75% unanimously, signaling inflation vigilance after rally.<\/p>\n","protected":false},"author":38,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[46],"tags":[],"class_list":["post-31249","post","type-post","status-publish","format-standard","hentry","category-live-updates"],"acf":[],"aioseo_notices":[],"featured_image_src":null,"featured_image_src_square":null,"author_info":{"display_name":"josephine","author_link":"https:\/\/www.vtmarketsglobal.com\/en\/author\/josephine\/"},"_links":{"self":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/posts\/31249","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/users\/38"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/comments?post=31249"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/posts\/31249\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/media?parent=31249"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/categories?post=31249"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/tags?post=31249"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}