GBP/USD Price Outlook – Trade SetupBritish Pound / U.S. DollarFOREXCOM:GBPUSDATFX_Global📊 Technical Structure GBPUSD GBP/USD has found a temporary floor near 1.3110–1.3120, aligning with the marked Support Zone (1.3107–1.3126). The pair remains in a corrective phase after weeks of sustained losses. Price is consolidating just above the support base, with a potential recovery target at 1.3204–1.3226, the next Resistance Zone. From a structural standpoint, a rebound scenario remains plausible if 1.3110 holds, targeting 1.3200 first, then 1.3270. However, a decisive break below 1.3100 would resume the downtrend toward 1.3050 or lower. 🎯 Trade Setup Entry: 1.3107– 1.3127 (support retest) Stop Loss: 1.3102 Take Profit: 1.3204 / 1.3226 Risk-Reward Ratio: ≈ 1 : 4.43 🌐 Macro Background Sterling steadies near 1.3150 after an extended losing streak, supported by profit-taking and oversold conditions, while traders await Thursday’s Bank of England (BoE) policy decision. As FXStreet’s Joshua Gibson notes: “Cable found enough friction to hold off further declines as Pound traders await the BoE’s latest rate decision.” 【FXStreet】 US Side: The ISM Manufacturing PMI dropped to 48.7 in October (vs. 49.5 expected), signalling continued contraction in U.S. factory activity for an eighth consecutive month. However, the ongoing U.S. government shutdown is clouding data reliability and keeping USD sentiment mixed. UK Side: The BoE is widely expected to keep rates unchanged with a 6–3 vote, though one additional vote for a rate cut would signal growing internal pressure for policy easing. Inflation Context: UK headline inflation remains at 3.8% (August) — nearly double the BoE’s 2% target — limiting the central bank’s ability to ease aggressively. Overall, with risk sentiment fragile and BoE caution expected, GBP/USD could see a corrective bounce, but upside remains capped unless the BoE adopts a notably hawkish tone. 🔑 Key Technical Levels Resistance: 1.3204 – 1.3226 Support: 1.3107 – 1.3126 Psychological Level: 1.3150 📌 Trade Summary GBP/USD remains weak but stable above 1.3120 support. The setup favours a technical rebound trade toward 1.3204–1.3226, supported by oversold conditions and market caution ahead of the BoE. A break below 1.3100, however, would invalidate this scenario and reopen the path toward 1.3050. ⚠️ Disclaimer This analysis is for reference only and does not constitute trading advice. Trading involves significant risk, and proper risk management is essential.