GBP/USD: forecast for November 9-15
By Kira Iukhtenko
Dovish Bank of England’s remarks and hawkish Federal Reserve pulled the British pound much lower over the past week. The currency pair; GBP/USD lost almost 400 pips despite the upbeat economic figures released in Britain.
The pair remains in a descending channel (red lines on the chart). We see space for a decline to 1.5000 in the near-term. For now, there are no fundamental reasons for the pair to fall below this support. However, it will all depend on the market volatility in the new week. Major resistance is now seen at 1.5250, 1.5330 and 1.5500 (channel resistance).
As for the UK economic calendar in the new week, pay attention to the labor market data on Wednesday. Employment figures could show improvement and pull the pound higher. Bank of England will also deliver a press conference on the Inflation report on Wednesday.