GBP/USD drops to fresh weekly low, holds above mid-1.2500s ahead of BoE

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• GBP/USD comes under some bearish pressure on Thursday and retreats further from the YTD peak.
• Resurgent USD demand prompts aggressive selling amid some repositioning trade ahead of the BoE.
• The fundamental backdrop still supports prospects for the emergence of dip-buying at lower levels.

The GBP/USD pair extends the previous day’s retracement slide from the 1.2680 region, or its highest level since April 2022 and remains under heavy selling pressure on Thursday. The downward trajectory remains uninterrupted through the early part of the European session and drags spot prices to a fresh weekly low, around the 1.2565 area in the last hour.