The British pound is under selling pressure against the US dollar in early Friday trade, following the release of the FOMC monetary policy statement. What can traders expect next? The following GBPUSD technical forecast reveals.
November 9, OctaFX – Sterling fell against the USD after the Fed’s interest rate decision. Today, the UK will release the first reading of the third quarter GDP numbers and other important data.
Over the quarter, traders expect that the economy rose by an annualized rate of 1.5%, which was higher than the second quarter’s growth of 1.2%. On a MoM basis, the economy expanded by 0.6%, which was better than the expected 0.3%.
The manufacturing production in September is expected to grow by 0.1%, which was higher than the slump of minus 0.2% in August.
GBPUSD Technical Forecast
The GBPUSD pair ended the sharp upward trend it has been following the past few days. The pair declined from yesterday’s high of 1.3175 to an intraday low of 1.3040.
On the hourly chart, the pair’s ADX is currently at 31 and rising. The double EMA indicators have crossed one another which is an indication that the downward momentum could be maintained. While this could happen, the biggest driver for the pair will be economic data from the UK.
If data is positive, the pair will resume the upward momentum. If it’s negative, it will likely test the important support level of 1.3000.
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