GBP/USD slipped to 1.3467 on 11/5/2026 despite the BoE’s 4% rate rise, weighed down by strong US job numbers and hawkish Fed comments.

The British pound slipped back to 1.3467 against the US dollar on 11/5/2026, erasing earlier gains despite the Bank of England’s decision to lift its policy rate to 4%. The move was overshadowed by robust US labour market data and hawkish remarks from Federal Reserve officials, keeping the dollar on the defensive.

BoE rate hike and its limited immediate impact

In an 8‑to‑1 split, the BoE raised the Bank Rate by 50 basis points to 4%, with Catherine Mann voting for the hike. The central bank also nudged its Q1 2027 inflation forecast up to 4.4% from 3.2% in July, signalling that further tightening may be needed. Governor Andrew Bailey warned that any additional increase would depend on evolving risks, including the situation in Iran.

Even with the higher rate, the pound’s upside was constrained because the differential with the Fed narrowed. Traders noted that the BoE’s outlook still leaves room for more hikes, but the immediate market reaction was muted as attention shifted to US data.

US labour market strength fuels dollar resilience

US initial jobless claims dropped to 189,000 for the week ending 10/31, well under the 196,000 consensus, while hiring plans surged 57% year‑on‑year to 444,692. These figures underscored a still‑tight labour market, reinforcing expectations that the Fed will keep a hawkish stance.

Fed officials echoed this view. Cleveland Fed President Beth Hammack advocated a gradual approach but stressed that more work remains, and Richmond Fed President Thomas Barkin warned that “broad‑based” inflation stays too high. Their comments added pressure on the pound, which had hoped to benefit from the BoE’s move.

Read also: Gold stalls below $4,150 as US dollar regains ground on Nov 5, 2026

Technical picture on the daily chart

On the daily chart, GBP/USD sits just above its short‑term simple moving average cluster around 1.3366, with a rising trend‑line support near 1.3360. The 14‑period RSI hovers near 64, indicating solid buying pressure but not an overbought condition. Immediate resistance lies at the recent reaction high of 1.3508, followed by a stronger ceiling near 1.3544.

A break below the 1.3360‑1.3366 zone would undermine the bullish bias and could open the path to earlier swing lows around 1.3159. For now, the pair retains a constructive bias as long as it respects the moving‑average floor.

What to watch next

Traders will focus on the US non‑farm payrolls release, scheduled for Friday, which could further shape the USD and, by extension, GBP/USD. In the UK, the calendar is quiet, so any surprise in domestic data or geopolitical developments could become the next catalyst.

• US Non‑Farm Payrolls (Friday, 11/6/2026)
• Upcoming BoE minutes (date not specified)
• Potential shifts in Fed rhetoric after NFP

Frequently asked questions

Official data sources

• Bank of England
• Federal Reserve (Fed)

Related news

• Gold stalls below $4,150 as US dollar regains ground on Nov 5, 2026
• Bank of England hikes rate to 4% as inflation outlook nears 5%
• Market overview: pound climbs, gold recovers and bitcoin steadies
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This article is compiled from international market news for information only. It is not investment advice.