GBPUSD Daily Forecast Oct 10 2018

GBPUSD: Recovers, Tests 1.3178 Levels

As long as 1.3000 support holds on a daily closing basis, the GBPUSD remains in recovery mode and further upside couldn’t be ruled out, but upside above 1.3000 should be limited by 1.3178 levels, anyway; above 1.3178 will reverse risk to the upside to the 1.3268 levels where a break will aim the 1.3362 levels.

On the downside, support comes at the 1.3125 levels, a cut through support will aim the 1.3072levels ahead of 1.3000 levels, further down, support comes at the 1.2933 levels

Conclusion: The GBPUSD sees recovery threats above 1.3125 levels with a risk to break above 1.3178 levels, below 1.3125 sees a fall risk to 1.3072/1.3000 levels before another rise…

Support:1.3125, 1.3072, 1.3000, 1.2933

Resistance 13178, 1.3268, 1.3362, 1.3445

Key data/events which may affect GBPUSD today:

1- U.K GDP

Any reading above 0.1% or an optimistic outlook regarding the Brexit, this scenario is likely to take out 1.3178 levels.

The U.K will publish economic growth figures for August on today at 08:30 GMT. The U.K economy is expected to expand by 0.1% easing from July’s 0.3%, amid uncertainty about Brexit.

2- U.K Manufacturing Production

The U.K will also report on Manufacturing Production for Aug today at 08:30 GMT. The indicator is expected to rise 0.1%, from -0.2% a month earlier.

3- U.S PPI

The U.S will report on Producer Price Index for Sep today at 12:30 GMT. The indicator is expected to rise 0.2%, from -0.1% in the previous month.

4- Fed speakers

Speech from Atlanta Fed boss Raphael Bostic will be in focus late tonight at 22:00 GMT. The Fed raised interest rates late last month, raising its third interest rate this year, and is expected to follow another increase before the end of December, bringing the federal funds rate to 2.25-2.50%. Any comments on interest rates will affect the market.

Recommended Reading:

Forex - Uk - pound

GBPUSD: Risk Builds Up On 1.3180 Levels Ahead Of U.K GDP Data!

According to the 4-H chart, the GBPUSD maintained a bullish momentum today. The focus has shifted to the upside to the 1.3180 levels. Immediate support is seen around 1.3044 levels, stability above this level...