GBP/USD: forecast for October 26-30
GBP/USD failed to overcome the 1.5500 resistance on the past week. This is the trend line, connecting August and September highs. Support 1.5410 was broken after the dovish ECB meeting on Thursday. This move negated our bullish forecast for the cable.
Break below the 1.5360 support will open the way to 1.5330 (trend support, yellow line on the chart). Break below this mark would confirm a reversal chart pattern. Our medium-term bearish targets will then move to 1.5000.
Watch the UK Q3 GDP data on Tuesday – this is the major release in Great Britain this week. Economic growth could have slowed a little. You should also pay attention to the FOMC meeting results on Wednesday and to the US GDP on Thursday. These releases will set the new reality for the cable.