Pound Sterling Awaits BoE Interest Rate Decision

Investors are waiting for the Bank of England's (BoE) interest rate decision, causing the Pound Sterling to struggle to find direction on Monday. The GBP/USD pair is trading sideways as the market mood turns quiet. Investors are also keeping an eye out for new developments in the Israel-Palestine conflict before taking further action.

It is widely expected that the BoE will keep the status quo on November 2 due to subdued consumer spending and labor demand, which would not allow price pressures to accelerate further. However, guidance on where the bank sees the interest rate peak and inflation will be closely monitored. Market participants would like to know if the central bank shares UK Prime Minister Rishi Sunak’s view of halving headline inflation to 5.4% by the end of the year.

Due to soft labor demand, poor factory activity, weak consumer spending, and deepening geopolitical tensions, BoE policymakers are expected to maintain the current interest rate of 5.25%.

GBPUSD is touching the last support at 1.2070 waiting for more developments to find direction. The pair is bearish, and more selloffs can come with the actual strength of the dollar and the weakness of the pound.

Resistance 3	Resistance 2	Resistance 1	Support 1	Support 2	Support 3
1.2450	1.2300	1.2200	1.2000	1.1900	1.1800