GBP/USD Nears Resistance as Traders Await Bank of England Decision

Daily outlook Neutral bias Nov 5, 2026, 06:32 UTC

Claire DuboisEuropean Markets Analyst · ForexR analyst

GBP/USD navigates a mixed daily trend between the daily pivot and R1, holding a neutral bias. The market awaits high-impact Bank of England rate announcements and scheduled US labor data.

GBP/USD Builds Momentum Ahead of Bank of England Decision

Trading in the Asia session, GBP/USD currently sits at 1.34928, positioned directly between the daily pivot at 1.34589 and R1 at 1.3513. The evidence points to a neutral bias as the technical timeframes conflict. Nearest resistance is 9.6 pips above price at the previous day high of 1.35024, while nearest support is 33.9 pips away at the daily pivot of 1.34589.

The pair is up 0.00233, or 0.17%, on the day. Today's price action spans a day high of 1.34964 and a day low of 1.34589, establishing a day range of 37.5 pips. This range accounts for 54% of the 14-day average true range of 68.9 pips.

GBP/USD Technical Analysis: Key Indicators and Pivot Levels

The broader trend framework offers conflicting signals. The daily trend registers as mixed, though price remains positioned above the 200-day exponential moving average of 1.34007. Shorter timeframes demonstrate a different structure, with both the 4-hour and 1-hour charts showing an upward trend. Momentum on the daily chart places the 14-day RSI at 63.7.

Traders monitoring market boundaries will find round levels at 1.35 above and 1.345 below price. The previous day high stands at 1.35024, and the previous day low is marked at 1.34047. Broadening the technical view, the 5-day range recorded a high of 1.35024 and a low of 1.32952. The 20-day window features a high of 1.35024 alongside a low of 1.3136. Other calculated pivot points shaping the session include R2 at 1.35566, R3 at 1.36107, S1 at 1.34153, S2 at 1.33612, and S3 at 1.33176.

Potential Trading Scenarios for Cable

A break above R1 at 1.3513 would open the way to R2 at 1.35566; a move back below the daily pivot at 1.34589 would invalidate this bullish setup. On the downside, a break below S1 at 1.34153 would open the way to S2 at 1.33612; a move back above the daily pivot at 1.34589 would invalidate this bearish outlook. Defining these boundaries can assist with risk and reward planning as volume transitions into the European hours.

BoE Policy Outlook and US Labor Data in Play

London opens at 07:00 UTC, leading into a heavily scheduled economic calendar. Early US data arrives at 10:30 UTC with the Challenger Job Cuts, following a previous print of 43.281. The focus then shifts to the Bank of England at 12:00 UTC for its Interest Rate Decision, which carries an estimate of 4 against a previous 3.75. The release includes the Monetary Policy Report, Meeting Minutes, and committee votes, where estimates project 7 votes to hike and 2 votes to leave rates unchanged. Governor Bailey will follow with a speech at 12:30 UTC.

The US docket resumes at 13:30 UTC with Initial Jobless Claims estimated at 196 against a previous 194, Unit Labor Costs expected at 0.6 compared to a previous 1.2, and Nonfarm Productivity estimated at 2.5 against the previous 1.4. The Fed's Hammack is scheduled to speak at 13:50 UTC.

The morning's newsflow centers on sterling's recovery facing a Bank of England test and broader US dollar weakness following the US elections, as reported by FX Street, Forexcom, Scotiabank, and FXEmpire. Tracking this coverage, the independent media mood provides an opportunity score of 69, generating a bullish reading on a news volume that is 169% of the 90-day average. In the futures market, as of the week to October 27, large speculators were net short GBP/USD; week-over-week, speculators reduced net short GBP/USD. Contextually, US Treasury yields at the November 4 close saw the 2-year yield at 4.58%, down 3 basis points, and the 10-year yield at 4.9%, down 5 basis points.

Bottom Line

GBP/USD navigates conflicting trends just below the 1.35024 resistance marker. With a packed schedule of Bank of England releases and US labor data ahead, the daily pivot at 1.34589 serves as a central anchor for the session's shifting momentum.