GBP/USD: forecast for November 23-29
By Kira Iukhtenko
Bullish attack on the British pound was capped by the 1.5330 mark last week – this is 61.8% Fibonacci retracement from the early November decline and the local trend line resistance. Pay attention to the “falling star” candle formed on the weekly chart.
The pair is testing the 1.5150 support on Monday. In the current market conditions, we favor more downside for the cable to come. Break below 1.5100 (October 1 low) would open the way to 1.5000. We need a break above 1.5330 to believe that the buyers retake control over the market.
As for the economic calendar, watch the UK Autumn Forecast Statement on Wednesday and the second estimate Q3 GDP on Friday. No revision here is expected – UK economy is estimated to have grown by 0.5% from July to October.