FxWirePro: GBP/USD slides below 1.3200 on strong dollar and BoE dovish bets

• GBP/USD extended losses below  1.3200 on Thursday as stronger US dollar and dovish expectation from Bank of England weighed on pound.

•Pound  has weakened in recent days on rising expectations that the Bank of England will cut interest rates, though the British central bank is still seen as most likely to hold rates steady next week.

•Softer economic data and signs of cooling inflation have strengthened the case for policy easing, prompting investors to reassess the outlook for UK interest rates.

• Markets are also abuzz with speculation about the depth of tax increases and spending reductions Chancellor Rachel Reeves might unveil in the late-November budget, with analysts noting that stronger fiscal tightening could accelerate the BoE’s path toward rate cuts.

• Markets currently see around a one in three chance of a 25 basis point BoE rate cut next week.

•   Immediate resistance is located at 1.3291(Daly high), any close above will push the pair towards 1.3264(38.2%fib)

•  Strong support is seen at 1.3117(23.6%fib) and break below could take the pair towards 1.3000(Psychological level).

  Recommendation: Good to sell  around 1.3170 , with stop loss of 1.3250 and target price of 1.3050