The GBP/USD exchange rate pulled back slightly after the Federal Reserve interest rate decision and US GDP data. It dropped to a low of 1.2400, down from this week’s high of 1.2500 as focus shifts to the upcoming US personal consumption expenditure (PCE) data and Bank of England (BoE) decision.

GBP/USD fell sharply on Thursday as sterling attracted sellers ahead of the Bank of Englands policy decision. Markets price in a 94% chance the BoE will cut rates by 25 basis points to 4.5% on Thursday,

Sterling fell against the dollar on Thursday, on track for its biggest daily drop in about a month, as investors awaited the outcome of the Bank of England's meeting, at which the central bank is widely expected to cut interest rates.