GBP Bears Keep Grip Near July Lows Amid Fed-BOE Divergence

Sterling/dollar extended its mild bearish tone during Thursday's Asian session, trading at 1.32316, with price action still constrained near the July low zone. The pair earlier touched its lowest level since early July, indicating sellers continue to dominate amid the monetary policy divergence between the Federal Reserve and the Bank of England.

**Central Bank Policy Divergence Weighs on Sterling**

The policy path difference between the Fed and the BoE is the core factor pressuring sterling recently. Market expectations for a hawkish Fed stance contrast with the BoE's relatively dovish tone, providing support for the dollar and persistently attracting selling in sterling. Against this backdrop, sterling/dollar has struggled to stage an effective rebound for multiple sessions, with any intraday recovery attempts meeting selling pressure.

**Pair Maintains Mild Bearish Bias**

On the technical front, sterling/dollar has maintained a mild bearish bias for a fourth consecutive day, consolidating around the 1.32316 area. A modest rebound from the 1.3320 region earlier failed to sustain, with the pair retreating again on Wednesday and recording a bearish inclination for a third straight day. The overall trend shows sellers still controlling short-term direction, with limited rebound momentum and a tendency to consolidate near lower levels.

**Short-Term Outlook Constrained by Key Levels**

Sterling/dollar currently trades in the low zone since early July, with attention on whether this level can provide effective support. If the pair remains pressured within the current range, it may test lower thresholds; conversely, any corrective rebound could face upside resistance limiting its advance. Traders are awaiting fresh catalysts to determine whether the pair can escape its current weak consolidation pattern.