GBP/USD steadies below 1.3400 as traders digest BoE policy update and US inflation data

GBP/USD is showing stability below the 1.3400 mark while struggling to attract significant buying interest. The recent pullback from the mid-1.3400s, nearly a two-month high, indicates a cautious market atmosphere. The Bank of England's policy update has contributed to short-term volatility, but its overall impact on the trend appears limited. Concerns regarding US inflation data also loom, affecting the broader economic outlook. Market participants are maintaining a cautious stance, awaiting further data. Technically, 1.3400 acts as a critical psychological resistance level, making any movements around this area noteworthy. Low trading volumes may present additional risks for traders in the current environment. Future developments concerning economic indicators from both the US and UK will be crucial.