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GBP/USD: Pound faces resistance after Bank of England hike
The Bank of England raises Bank Rate to 4.0%. Sterling’s recovery remains intact, but a potential double top on the hourly chart puts support near 1.3450 to the test.
The British pound is trading at around $1.3461 on the afternoon of 5 November 2026. GBP/USD has recovered strongly from its October low and returned to the central zone of its broader trading range. However, the advance is losing momentum in the short term: the four-hour chart still supports a recovery, while a potential double top on the hourly chart signals a risk of a pullback.
Bank of England raises Bank Rate to 4.0%
The Bank of England increased Bank Rate by 25 basis points to 4.0%, as expected. Eight policymakers supported the move, while one preferred a larger 50-basis-point increase. The vote underlines the Bank’s determination to contain inflationary pressure.
The BoE expects inflation to reach around 5% in the second quarter of 2027. For sterling, attention therefore turns to how much further interest rates may rise. The next important test will be the UK’s October inflation figures, due on 18 November.
Four-hour chart: GBP/USD returns to the central trading zone
Support between 1.3140 and 1.3163 has held again. From that area, GBP/USD advanced almost 3% over roughly three weeks to its recent high at 1.3503. Higher highs and higher lows define the short-term recovery, while an RSI reading near 59 supports the positive momentum.
The pair is now back inside the central zone between 1.3372 and 1.3591. A break above 1.3591 would bring the highs at 1.3658–1.3676 into view. Below 1.3372, attention would shift to the support area around the 200-period moving average at 1.3301 and the swing low at 1.3278.
GBP/USD four-hour chart: Recovery returns to the central trading zone
Hourly chart: Potential double top near 1.3503–1.3505
The hourly chart shows two peaks around 1.3503–1.3505, close to monthly pivot resistance R1. This potential double top remains unconfirmed.
An hourly close below the marked support near 1.3450 would trigger the bearish signal. Projecting the pattern’s height downwards gives a measured target near 1.3400. Before that, the rising 100-hour moving average around 1.3433 could provide support.
A confirmed break above 1.3505 would invalidate the double-top scenario and open the way towards 1.3591.
GBP/USD hourly chart: Potential double top puts 1.3450 support in focus
GBP/USD: Long and short setups
| Scenario | Trigger | Potential targets | Signal invalidated by |
|---|---|---|---|
| Long – hourly chart | Hourly close above 1.3505 | 1.3591 | A close back below 1.3505 |
| Short – hourly chart | Hourly close below 1.3450 | Around 1.3433, then 1.3400 | A close back above 1.3450 |
| Long – four-hour chart | Four-hour close above 1.3591 | 1.3658–1.3676, then 1.3729 | A close back below 1.3591 |
| Short – four-hour chart | Four-hour close below 1.3372 | 1.3301, then 1.3278 | A close back above 1.3372 |
GBP/USD: Five Year Price Performance
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