GBPUSD: Recovers With Caution!
As long as 1.2765 support holds on a daily closing basis, the GBPUSD remains in a recovery mode and further upside couldn’t be ruled out. Resistance comes around 1.2866 level, above that level would open 1.1950/1.3015 level. If 1.3015 fails to hold, the pair will see more gains to 1.3088/1.3130 levels.
On the downside, support comes at 1.2765 level, below that level will restore the downside momentum and aim 1.2700 level. A cut through support would open 1.2625 level, further down, support stands at 1.2530 level.
Conclusion: The GBPUSD sees recovery threats above 1.2765 levels.
Support: 1.2765, 1.2700, 1.2625, 1.2535
Resistance: 1.2870, 1.2950, 1.3015, 1.3088
I said, early in the weekly outlook report: any news or rumors have to do with Brexit will have a strong impact on GBPUSD or GBP in general… well, There are saying that an agreement has been reached through the negotiations between the United Kingdom and the European Union about Brexit, although nothing is certain so far and some British officials have denied that today, the echo of this news continues to affect the market, both the pound and the euro still recovering against the dollar.
Note that the market ignored data from the U.K this morning. Despite U.K Manufacturing PMI was 51.1 missing a forecast of 53.0 ” too negative”, the market ignored the negative release, basically, this was a buying opportunity?!!!
Anyway; Today, there are two reports that will affect the pair strongly:
- The Bank of England will announce its latest monetary policy decision. Governor Mark Carney will hold a press conference at 12:30 GMT. The forecast that central bank will keep its short-term interest rate target at 0.75% as the previous month. Any remarks from Mark Carney about the Brexit will certainly affect the market strongly.
- The U.S will report on ISM Manufacturing PMI for Oct at 14:00 GMT. The forecast is to slip to 59.0, from 59.8 in the preceding month. Any reading above forecast will support the USD. Below-forecast may push the pair to 1.1415 level.