GBPUSD Daily Forecast Oct 18 2018

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GBPUSD: Continues To Consolidate With A Downside Bias!

As long as 1.3222 resistance holds on a daily closing basis, the GBPUSD remains in a pullback mode and further downside move could be seen. Immediate support comes at 1.3072 levels. A halt is likely and it may test 1.3150 level before attempts another fall, however; a cut below 1.3072 will aim 1.3017 levels, further down, support stands at 1.2935 level.

On the upside, resistance comes at 1.3150 level, a sustained breakout – daily closing – above that level will aim 1.3222 levels, above 1.3222 will restore the upside momentum and target the 1.3295 levels.

Conclusion: The GBPUSD remains exposed to the downside below 1.3222/1.3150 levels.

Support: 1.3072, 1.3017, 1.2935

Resistance: 1.3150, 1.3222, 1.3295

blankKey data/events which may affect GBPUSD today:

  • EU Leaders Summit: If the UK makes a deal with the EU on Brexit, GBPUSD will rise, volatility is expected. Negative news about Brexit will keep it under pressure. Anyway: I think even in the best cases, let’s supposed they get a deal with EU on Brexit, 1.3150/1.3222 should cap any upside move…
  • The U.S will report on the Philadelphia Fed Manufacturing Index today at 12:30 GMT. The indicator is expected to fall 19.7, from 22.9 a month earlier. Any reading above forecast will support the USD while any reading below forecast will support the EURO. A selling opportunity is likely today.

MARKET DATA

UPCOMING ECONOMIC EVENTS