GBP/USD remains firm above 1.3050 on Thursday, extending its second day of gains as traders await the Bank of England (BoE) policy decision. The Pound Sterling (GBP) stays supported on expectations that the BoE will keep rates unchanged at 4%, though softer inflation and wage growth have strengthened the case for potential rate cuts in early 2026.

Attention also turns to Chancellor Rachel Reeves’ upcoming budget on November 26, where she is expected to introduce tighter fiscal measures to address the UK’s high borrowing levels — possibly through targeted tax increases.

On the US side, the Dollar Index (DXY) eased slightly after a recent rally, giving GBP/USD room to hold gains. However, the Greenback’s pullback might be temporary as robust US data — including ADP Employment rising by 42K and ISM Services PMI improving to 52.4 — has lowered the chances of a Federal Reserve (Fed) rate cut in December to 62%, from 68% previously.

Overall, GBP/USD maintains a bullish bias above 1.3050, though any hawkish tone from the BoE could decide whether the pair extends its climb or faces renewed selling pressure.