GBP/USD rebounds after BoE's dovish hold but remains below 1.31

• GBP/USD remains above 1.3050, after touching daily highs but facing resistance near 1.3100.
• BoE keeps Bank Rate at 4% in a 5-4 split; dissenters Dhingra, Taylor, Ramsden, and Breeden favored a 25 bps cut.
• Bailey says policy is still restrictive and that more data are needed before easing further.

The GBP/USD recovers some ground yet trades off daily highs as the Bank of England held rates unchanged, on a "dovish" hold as the vote split hints that the December meeting is open. The pair trades at 1.3080, up 0.26%.

Sterling trims gains as Bailey warns rate cuts will be gradual and data-dependent

The BoE's kept the Bank Rate at 4% on a 5-4 vote split on Thursday. The four dissenters that wanted a 25-basis points rate cut were: Dhingra, Taylor, Ramsden and surprisingly Breeden. BoE Governor Andrew Bailey welcomed the September figure but warned that it was just one series and that they need further data.

At the press conference, Bailey focused on inflation, saying that he doesn't know where neutral rates would be and that the current policy is still restrictive.

The BoE's Monetary Policy Committee (MPC) believes that inflation has peaked. Baley added that "We still think rates are on a gradual path downwards, but we need to be sure that inflation is on track to return to our 2% target before we cut them again."

Across the pond, the US Challenger report by Gray & Christmas revealed that companies slashed over 150,000 jobs in October, the biggest reduction for the month in more than 20 years. The survey noted that industries adopting AI-driven changes are the main reason behind the layoffs.

The data moved the needle about the Federal Reserve's December meeting. Money markets see a 69% chance of a 25-basis points rate cut, up from 62% a day ago, according to Prime Market Terminal data.

Chicago Fed President Austan Goolsbee said the lack of official data on inflation during the shutdown "accentuates" his caution about cutting interest rates further, he said on Thursday in an interview with CNBC.

The Chicago Fed revealed an estimate of the Unemployment Rate in the US, reaching its highest level in four years, climbing to 4.36% last month from 4.35% in September.

GBP/USD Price Forecast: Technical outlook

Although the GBP/USD remains above 1.3000, a decisive break of 1.3100 is needed so buyers could remain hopeful of pushing spot prices towards the 200-day Simple Moving Average (SMA) at1.3257.

Conversely, if GBP/USD ends on a daily basis below 1.3050, sellers could challenge 1.3000 as they aim to test the latest swing low of 1.2707, reached on April 8.