GBP/USD: forecast for October 5-11
By Kira Iukhtenko
GBP/USD broke above the 1.5160 resistance on the downbeat US labor market data on Friday. The pair confirmed a reversal “rising wedge” pattern on the daily chart. It seems that the bearish trend has finally ended. The pair is trading in a medium term bullish flag with the next targets at 1.5330 and 1.5500. Next support lies at 1.5050.
As for the economic calendar, you should watch Services PMI on Monday and Manufacturing production on Wednesday. The Bank of England meeting will take place on Thursday. Monetary policy is expected to stay on hold, but it is the change in rhetoric that matters for the market.
Chart. H4 GBP/USD