Head and shoulders Pattern GPBUSD

**1 p.m. BoE interest rate decision with a possible rate cut from 4.5% to 4.25%.**

A reduction in interest rates makes investments denominated in sterling less attractive to international investors, as they offer lower returns. This can lead to a decrease in demand for GBP and, consequently, a depreciation of the currency.

**Stimulus to the economy:** Lower rates reduce the cost of credit for businesses and consumers, encouraging borrowing and spending. This can stimulate economic growth but may also increase inflation if demand exceeds supply.

**Impact on market expectations:** BoE decisions influence investors' expectations regarding the future of the economy and monetary policy. A rate cut can be interpreted as a sign of concern for economic growth, negatively affecting confidence in the pound.