• GBP/USD edged lower on Monday as investors positioned ahead of Thursday's Bank of England meeting.
• The Bank of England is widely expected to hold interest rates on Thursday, pausing its easing cycle for the first time since it began loosening policy last year..
• The Bank of England’s latest quarter-point rate cut to 4% in August was narrowly approved, passing by a 5-4 margin after two rounds of Monetary Policy Committee voting.
•In September, Governor Andrew Bailey noted that the pace of the Bank of England’s rate cuts implemented roughly every three months since August 2024 had become “more uncertain.”.
•On the data front, British manufacturing activity strengthened in October, marking its best performance in a year. The S&P Global Manufacturing PMI rose to 49.7 from 46.2 in September, slightly above the preliminary estimate of 49.6.
• Immediate resistance is located at 1.3256(38.2%fib), any close above will push the pair towards 1.3321(SMA 20)
• Strong support is seen at 1.3113(23.6%fib) and break below could take the pair towards 1.3087(Lower BB).
Recommendation: Good to sell around 1.3140, with stop loss of 1.3210 and target price of 1.3080
