GBP/USD – BoE Rate Decision Ahead

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🧠 Setup Overview:
GBP/USD is trading inside a descending channel, with price recently rebounding from a strong support zone near 1.3000.
Ahead of the Bank of England (BoE) interest rate decision, the pair is positioned for a possible bullish breakout if the BoE maintains rates and highlights inflation risks.

Trading Plan:

Bullish Scenario:
If the BoE holds rates and remains cautious on inflation → expect GBP/USD to rebound toward 1.3120 – 1.3180.
Breakout confirmation above channel resistance will strengthen the bullish view.

Bearish Scenario:
If the BoE signals dovish tone or hints at future rate cuts, GBP/USD could drop below 1.3000, targeting 1.2850 – 1.2710.

️ Technical Levels:

🟢 1st Resistance: 1.3133
🟢 2nd Resistance: 1.3171
Support Zone: 1.3000 – 1.3020

Pattern: Falling Channel → Potential Breakout

🧩 Fundamental Insight (Today – 6 Nov 2025)
1.Markets price a 1-in-3 chance of a BoE rate cut to 3.75%, but consensus expects a hold at 4.00%.
2.UK inflation at 3.8% YoY remains above the BoE’s target, supporting a hawkish stance.
3.A surprise dovish tone, however, could hit the pound hard against the USD, especially as US data remains resilient and the dollar stays firm.

[EmTeam]

Volatility incoming — always a wild ride before BoE news.

[Rimon Khan]

Keeping stops tight; market loves to hunt liquidity pre-announcement.