#GBPUSD

▪️ Trade: Buy at market
▪️ Entry: 1.34150
▪️ Take profit: Open
▪️ Stop loss: 1.33540
▪️ Valid from: November 3, 2026
Market outlook:
Today we are looking at a long setup on GBP/USD.
The pair is making a local move higher: price is setting new highs without making new lows. A new support zone has formed below the current price at 1.33903–1.33951, along with a lower-timeframe level at 1.34122. Price is now attempting to hold above these levels.
Newly formed support zones are a priority in our analysis because they reflect the current market structure. Support has already been retested, so we are entering long at market.
The Bank of England is widely expected to raise rates on Thursday for the first time since 2023, with the market pricing in several more hikes next year. This would narrow the yield gap with the dollar in favor of the pound.
The UK budget, one of the main risks in recent weeks, is now behind us. Markets took it calmly, government bonds showed little reaction, and the pound is no longer carrying that uncertainty. UK inflation stands at 3.5% and is forecast to rise above 4% early next year, leaving the central bank little room to ease policy. Meanwhile, the dollar is weakening as oil prices fall and traders reduce positions ahead of the US elections.
Risk management:
In line with our trading strategy, the stop loss is placed at 1.33540, below support at 1.33709. A return to this area would mean price had moved back below all the key newly formed support zones, invalidating the setup.
Targets:
Our first target is 1.34517, where we will move the stop loss to breakeven. This level has already been tested once, so on the next test we expect a potential breakout and continuation toward 1.34891–1.35006.
That zone has also been tested before, so we are leaving the take profit open and will monitor price action. The setup offers good potential and a favorable risk-to-reward ratio.
Our main objective today is to move the stop loss to breakeven. If price consolidates and remains near our entry by this evening, we will close the position, given the news and geopolitical backdrop. We will hold the trade beyond today only if the stop has been moved to breakeven.
The setup meets all the rules of our trading strategy. Let’s stay disciplined, traders. Wishing everyone profitable trades and calm nerves during central bank week! 🤝
Trade updates: https://t.me/addlist/1tRFE2bSkE04MWNi