GBP/USD Struggles Following BoE Uncertainty and US Dollar Strength

The GBP/USD pair is struggling to gain momentum on Thursday, it’s hovering near the lower end of a one-week trading range as it awaits a new catalyst before making a significant move.

This is largely due to uncertainty surrounding the Bank of England's (BoE) next policy decision, which is weighing on the British Pound (GBP) and acting as a headwind for GBP/USD. Recent UK consumer inflation data, released on Wednesday, showed that the CPI remained at 6.7% in September, which was slightly higher than expected. This has led to speculation about a potential BoE rate hike in November.

The BoE's stance on interest rates is divided, with some members advocating for rate hikes while others warn against overtightening. This mixed sentiment is keeping traders cautious. Additionally, the strength of the US Dollar (USD), supported by expectations of higher interest rates from the Federal Reserve, is capping the GBP/USD's upside potential. The focus remains on a scheduled speech by Fed Chair Jerome Powell later in the day.

The reading continues to be the same for the GBP/USD as it is entering an accumulation phase while waiting for a clear direction. The short-term reading seems bearish going toward the next support at 1.2050.

Resistance 3	Resistance 2	Resistance 1	Support 1	Support 2	Support 3
1.2450	1.2300	1.2200	1.2050	1.2000	1.1820