GBP/USD: forecast for December 7-13

By Kira Iukhtenko

GBP/USD bounced from the 1.4900 support last week (trend line) and recovered back above 1.5100. Long-legged candle on the weekly chart confirms that the buyers remain active. The question is whether the pair will manage to break above the 1.5170/1.5200 area. Muted reaction to the strong labor market data from the United States leaves potential for more upside.

On Tuesday, watch the UK manufacturing production data. On Thursday, the Bank of England will hold its monthly meeting.  No changes in monetary policy is now expected. However, the recent Marc Carney’s dovish comments confirm he remains cautious about raising the rates too early. This is a bearish risk to watch.

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