Bank of England to Announce Monetary Policy Decision

The Bank of England's Monetary Policy Committee (MPC) will meet this week to determine the future of monetary policy and announce its decision on Thursday, November 2. Alongside the decision, the central bank will release the Monetary Policy Report, which includes economic analysis and inflation projections used by the MPC to inform interest rate decisions.

The BoE focuses on three key data figures when making policy decisions: private-sector wage growth services inflation, and the vacancy-to-unemployment ratio. Like other major central banks, the BoE has adopted a "higher for longer" approach, aiming to keep benchmark rates elevated for an extended period to manage inflationary pressures.

In October, UK shop price inflation eased to 5.2%, the lowest rate in over a year, primarily due to falling prices of homegrown food. The Consumer Prices Index (CPI) rose by 6.7% over the previous 12 months, unchanged from August. Every month, CPI increased by 0.5% in September 2023, the same as in September 2022.

Regarding the US Federal Reserve (Fed), they recently maintained rates at 5.5%, which had a limited impact on financial markets. Fed Chair Powell's statements were mixed, indicating that rate cuts are not being considered but questioning the need for additional hikes. Powell also mentioned that policymakers are committed to achieving a sufficiently restrictive stance but could not determine if that point had been reached.

GBPUSD is touching the last support at 1.2070 waiting for more developments to find direction. The pair formed a descending triangle which is a bearish signal but today's BoE meeting will determine better the direction. If it breaks down then the 1.1900 will be the target.

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