A fall is possible.

On the daily chart, the upward first wave of the higher level (1) ended, and a correction develops as the second wave (2). Now, the wave A of (2) is forming, within which the fifth wave of the lower level v of A is developing. If the assumption is correct, the GBP/USD pair will fall to the area of 1.2300–1.2033. In this scenario, critical stop loss level is 1.2735.

The GBP/USD pair is correcting at 1.2480 after the expected decision of the Bank of England to keep the interest rate at 4.75%, supported by six out of nine members of the Monetary Policy Committee, fearing a new rise in consumer prices. Three members voted for the interest rate change by –25 basis points, although analysts assumed there would be no more than two.

During the Asian session, the GBP/USD pair is trading in the area of 1.2590, recovering the positions lost the day before. The "bullish" sentiment is supported by technical factors, but investors are in no hurry to open new deals, preferring to wait for the results of the Bank of England meeting, which will be announced today at 14:00 (GMT+2). No changes in the monetary policy vector are expected: analysts expect that eight out of nine board members will vote to keep the interest rate at 4.75%.

The GBP/USD pair is trading above the support level of 1.2695 and local highs from November 12, updated at the end of last week, preparing to continue moving towards the target of 1.2870.