GBPUSD Daily Forecast Oct 17 2018

GBPUSD: Still Sees CorrectiveThreats Below 1.3215 

As long as 1.3215 resistance holds on a daily closing basis, the GBPUSD remains in a corrective pullback mode and further downside move couldn’t be ruled out, support comes at 1.3150 levels, below 1.3150 will aim 1.3072 levels where a cut will open the way to 1.3017 levels, further down, support comes at the 1.2933 levels.

On the upside, the GBPUSD will have to break and hold above 1.3215 level to prevent a return to the downside, however; above 1.3215 will target 1.3295 level, further upside, resistance comes at 1.3362 level ahead of 1.3445 level.

Conclusion: The GBPUSD sees corrective pullback threats below 1.3215 level, above 1.3215 will restore the upside momentum and aim the 1.3295 level.

Support: 1.3150, 1.3072, 13017, 1.2933

Resistance 1.3215, 1.3295, 1.3362, 1.3445

Key data/events which may affect GBPUSD today:

The U.K already report on Consumer Price Inflation, Monthly CPI fell to 0.1%, from 0.7% a month earlier, missing a forecast of 0.2 %. Year-over-Year CPI also reversed down to 2.4%, from 2.7% in the preceding month, missing a forecast of 2.6%.

This development puts the GBPUSD under pressure, at the moment the pair trades around 1.3140 levels, intraday support comes around 1.3125 levels where a cut will aim the 1.3072 levels. Anyway, stability below 1.3150 will keep pushing towards 1.3125/1.3072 levels. A break back above 1.3150 level will turn the focus back again on 1.3215 levels.

FOMC Meeting Minutes may bring a selling opportunity today.

Later today at 18:00 GMT. The Federal Reserve will release minutes of its most recent policy meeting. Any Hawkish tone by the Fed ( hiking rates at year end, good news about inflation) will support the USD against the GBP. But Any Dovish tone ( delaying hiking rates, conflict with Trump, bad news about inflation) will support the GBP against the USD.