The Pound Continues to Decline, with Little Support from the Bank of England

The GBP/USD pair has slowed its decline, stabilising near 1.3391. On the previous day, Bank of England Governor Andrew Bailey addressed key global economic challenges in a speech at Mansion House.
RoboForex | 110 days ago

On the previous day, Bank of England Governor Andrew Bailey addressed key global economic challenges in a speech at Mansion House. He described the latest wave of trade tariffs as a systemic event capable of reshaping global trade dynamics. Bailey highlighted growing domestic imbalances in the US and weak domestic demand in China, urging both nations to clarify their strategies for addressing these issues.

However, Bailey clarified that not all trade imbalances are inherently problematic – many stem from productivity disparities between nations. Yet, he warned that widening macroeconomic and political divergences are increasing systemic fragility. Recent developments, he added, have exposed weaknesses in multilateral cooperation and a failure to tackle emerging challenges effectively.

The Governor also stressed the International Monetary Fund’s (IMF) role in mitigating global imbalances, calling for more proactive international institutions. He attributed distortions primarily to domestic economic policies, cautioning that without reform, global financial stability could be at risk.

While current imbalances remain manageable by historical standards, Bailey warned against complacency. A comprehensive reassessment of policy approaches is essential to ensure the stability and predictability of the financial system.

Technical Analysis: GBP/USD

H4 Chart:

On the H4 chart, the GBP/USD pair has declined to the 1.3450 level, where a consolidation range has now formed. The pair has broken out to the downside, reaching 1.3378. Today, a short-term rebound to 1.3415 (as a retest from below) is possible. However, if resistance holds, the pair may resume its decline towards 1.3296. Upon completion of this downward wave, a potential bounce towards 1.3450 could follow. Technically, this scenario is confirmed by the MACD indicator, whose signal line is below zero and pointing firmly downward.

H1 Chart:

On the H1 chart, the GBP/USD pair is extending the third wave of its decline, with a local target at 1.3296. Once this level is reached, a correction towards 1.3460 could unfold. Technically, this scenario is supported by the Stochastic oscillator, with its signal line below 80 and trending sharply downwards towards 20.

Conclusion

Bearish momentum persists, with key support levels in focus. A short-term pullback remains possible, but the broader downtrend is likely to continue unless a significant shift in fundamentals occurs.

DisclaimerAny forecasts contained herein are based on the author's particular opinion. This analysis may not be treated as trading advice. RoboForex bears no responsibility for trading results based on trading recommendations and reviews contained herein.

 

RoboForex
Type: STP, ECN, Market Maker
Regulation: FSC (Belize)
read more
The dollar is regaining authority

The dollar is regaining authority

Market fears did not materialise The shutdown helps the US dollar The yen became October's outsider The Bank of England may cut rates
FxPro | 12h 5min ago
USDPJY, AUDUSD, GBPUSD

USDPJY, AUDUSD, GBPUSD

Fed speakers and ADP data in focus; USDJPY near 8-month high; RBA to hold rates at 3.60%; AUDUSD under pressure; BoE likely to stand pat; GBPUSD weak, eyes 6½ -month low
XM Group | 12h 11min ago
ATFX Market Outlook 3rd November 2025

ATFX Market Outlook 3rd November 2025

U.S. equities ended higher on Friday, led by Amazon’s upbeat earnings forecast, though investor optimism was tempered by renewed caution from several Federal Reserve officials. For the week, the S&P 500 rose 0.7%, the Nasdaq gained 2.24%, and the Dow added 0.75%. Several Fed hawks voiced opposition to further rate cuts, citing persistent inflation risks, which boosted the U.S. Dollar Index
ATFX | 14h 2min ago
ATFX ​Market Outlook 31st October 2025

ATFX ​Market Outlook 31st October 2025

U.S. equities fell on Thursday, with the three major indexes closing lower as Meta and Microsoft shares plunged amid market concerns over their substantial expenditures on artificial intelligence. The Nasdaq and S&P 500 led the decline, while the Dow Jones Industrial Average dropped 0.23%, the S&P 500 slid 0.99%, and the Nasdaq Composite tumbled 1.57%.
ATFX | 3 days ago
GBP/USD Finds a Floor at 1.3200 After Fed-Induced Sell-Off

GBP/USD Finds a Floor at 1.3200 After Fed-Induced Sell-Off

The GBP/USD pair is consolidating around the 1.3200 level on Thursday, following significant losses in the previous session. The pair is now trading near its lowest point since April 2025, with selling pressure intensifying after the Federal Reserve cut interest rates by 25 basis points.
RoboForex | 4 days ago
ATFX Market Outlook 28th October 2025

ATFX Market Outlook 28th October 2025

U.S. equities extended gains on Monday, with all three major indexes closing at record highs for the second straight session. Optimism over a potential U.S.–China trade deal, combined with anticipation for this week’s Big Tech earnings and the Federal Reserve’s policy decision, fueled the rally.
ATFX | 6 days ago
​ATFX Market Outlook 27th October 2025

​ATFX Market Outlook 27th October 2025

U.S. September consumer prices rose slightly less than expected, as a surge in gasoline costs was partly offset by a sharp decline in rents, supporting expectations for a Fed rate cut this week. U.S. equities closed at record highs on Friday, driven by the softer inflation data and strong corporate earnings.
ATFX | 7 days ago