ANZ Research adopts a mildly negative bias on GBP/USD in the near-term.

"The BoE kept the Bank Rate unchanged at 3.75%, in line with expectations. However, the voting split turned more hawkish, with three MPC members voting for a 25bp hike compared with two at the June meeting. Catherine Mann joined Megan Greene and Huw Pill in voting for tighter policy, reflecting concerns that higher energy prices could generate more persistent inflation and increase the risk of second-round effects. Recent inflation data have been somewhat more benign than expected. As a result, market expectations for close to two rate hikes by yearend 2026 appear excessive in our view," ANZ notes.

"Overall, we remain mildly negative on the GBP/USD and see 1.333 as the next key support level. Options markets also appear to offer an attractive opportunity to position for higher volatility. Despite risks stemming from ongoing geopolitical uncertainty, 1-month and 2-month at-the-money implied volatility recently fell to its lowest level in 10 years. We do not expect volatility to remain at such depressed levels and see value in buying downside GBP protection through put structures," ANZ adds.