GBPUSD Strategy - Awaiting the Bank of England Rate Decision: Where is the Pound Headed?

Fundamental Analysis
Former U.S. President Donald Trump has won this election, and given his statements on imposing a 60% tariff on China and 10% on other countries, alongside the resilience of the U.S. economy outperforming other nations, the U.S. dollar has strengthened in relative terms. In the U.K., September's CPI monthly rate showed zero growth, while the annual CPI dropped to 1.7%, below the 2% target. This led Bank of England Governor Bailey to comment that inflation is falling faster than expected, with potential for further rate cuts in November and December, possibly at a more aggressive rate. Therefore, attention should be on the BOE's rate decision at 20:00 tonight, which may continue to pressure the pound, putting the GBP/USD 1.28 level at risk.

Technical Analysis
On the 4-hour chart, GBP/USD continues to test new lows within the Bollinger Bands. Although there was a strong rebound, the downward trend remains intact, with an overall bearish bias. Currently, the MACD shows a convergence of bearish momentum, which may be seen as an oversold rebound. Those without positions could consider shorting at short-term resistance levels.

Trading Suggestion
Short GBP/USD at 1.2933, with a target of 1.2834 and a stop loss at 1.3000.

Support Level: 1.2834 Resistance Level: 1.2998