• GBP/USD slipped lower on Friday as investors weighed the Bank of England’s latest rate decision and turned their attention to the government’s upcoming budget later this month..
• A tight vote and indications that BoE Governor Andrew Bailey could soon align with rate-cut supporters have boosted expectations of a December easing.
• The BoE kept rates unchanged, falling short of the most dovish expectations, as a minority of analysts had anticipated a 25-basis-point cut.
• Traders see a 60% chance of a 25 bps BoE rate cut and a total of 58 bps of easing by end-2026. British 2-year yields, highly sensitive to policy expectations, rose 1.5 bps to 4.11% on Friday, after dropping 6.5 bps the day before.
• Immediate resistance is located at 1.3145(38.2%fib), any close above will push the pair towards 1.3267 (SMA 20)
• Strong support is seen at 1.2980(23.6%fib) and break below could take the pair towards 1.2945(Lower BB).
Recommendation: Good to sell around 1.3130 , with stop loss of 1.3200 and target price of 1.3050
