07.11.202405:03 Forex Analysis & Reviews: Forecast for GBP/USD on November 7, 2024

By the close of yesterday's session, reflecting the results of the U.S. elections, the British pound reached the target support level of 1.2859. The price slightly corrected this decline this morning, forming a double convergence with the Marlin oscillator. Today's primary focus will be the Bank of England's monetary policy decision. Not long ago, concerns about a potential double rate cut were circulating in the market, but ahead of today's meeting, investors are firmly expecting a quarter-point rate cut.

From a technical perspective, investors have not yet priced in even this standard rate cut, mainly due to speculative surges seen during the second and third weeks of September. As a result, pressure on the pound shows no signs of easing—unless the U.S. Federal Reserve's expected quarter-point rate cut later tonight helps alleviate some of this pressure. The price may continue consolidating within the broad 1.2859–1.2994 range based on a combination of factors.

Convergence is already complete in the four-hour time frame, pushing the price upward. If the price breaks above the Kijun-sen line, surpassing 1.2937, it will open the way toward the 1.2994 target.