GBP/USD: forecast for October 19-25
British pound attempted to extend the rally on the past week, but was capped by the 1.5500 figure. We recommend buying the pair on a break above this round mark, targeting 1.5580 (38.2% Fibonacci, trend resistance). The pair could pull back from this level. Further trade will strongly depend on the Fed’s rate expectations. We’ll stay bullish above 1.5410 in a short term.
As for the economic calendar, watch the BOE governor Marc Carney’s comments on Tuesday. UK September retail sales figures is the only important release to watch this week. Growth is expected to accelerate to 0.3%.