- Brexit positive news reports support the GBP/USD to remain strong.
- BOE is in the spotlight for now.
Even if comments from Fed’s Powell dragged GBP/USD from 50-day SMA, the quote is still on the bids around 1.3055 during early Asian sessions on Thursday.
On Wednesday, better than forecast UK manufacturing PMI and present optimism surrounding the Brexit confronted the US Dollar (USD) rally backed by Fed Chair’s upbeat statements concerning the economy and inflation.
Brexit optimism was recently strengthened as statements from the UK Prime Minister Theresa May and her spokesperson signaled readiness to respect rest of the lawmakers’ say on Brexit while praising cross-party talks.
Additionally, the BBC’s report that PM May hopes the UK will leave well before October 31 deadline further pleased Brexit supporters.
Recently, The Times said PM May is preparing to keep EU customs rules and let the UK be in EU lockstep for years after Brexit.
Looking forward, monetary policy meeting by the Bank of England (BOE) will be the key for the Cable traders as it offers quarterly inflation review to watch. The central bank is less likely to alter its present monetary policy but may be observed for hints concerning the bank’s stand in case of the Brexit. Also, economic forecasts will gain market attention as well.
On the other hand, the US is also up for releasing quarterly non-farm productivity and unit labor costs together with monthly factory orders and weekly initial jobless claims. Except for a bit pullback in unit labor costs, rest all the US data are likely to portray an upbeat picture of the world’s largest economy.
Technical Analysis
50-day simple moving average (SMA) level of 1.3105, adjacent to 1.130, seems nearby resistances to observe prior to looking for 1.3200 and 1.3270 numbers to the north.
During the pullback, 1.3000, 100-day SMA level of 1.2975 and 1.2960 figure comprising 200-day SMA could limit immediate declines, a break of which can recall April lows near 1.2865 on the chart.
Share
