Leading diagonal over?

GBP/USD traders have ignored the recent US data so far. Nevertheless, interest rate traders had priced in 74.5 basis points of Fed easing in 2025, down from the 81 bps expected a day ago.

Meanwhile, some Bank of England (BoE) members are crossing wires. Megan Greene commented that inflation is unlikely to persist and that it would fade at its own pace, though she added that policy needs to remain restrictive. BoE MPC member Alan Taylor said every meeting would be live for rate moves.

In the meantime, BoE Governor Andrew Bailey said they expect a pick-up in inflation. BoE Chief Economist Huw Pill added they need to remain vigilant and that evidence points against more rapid cuts in the Bank Rate.

The GBP/USD pair retreated somewhat on the headlines but remains within the 1.2850 – 1.2870 range.

Technically, we might have another drop for wave 5 of the diagonal to be completed.