We have two different fundamentals that effect GBPUSD . Economical data and the political events.
On the Sterling side: GBP was set to halt a three-week decline, while U.K. government bonds slumped as the latest update on the Brexit talks indicated there was still room for agreement by December.
Sterling climbed to its highest since last week’s Bank of England interest-rate increase after Brexit secretary David Davis and his European Union counterpart Michel Barnier said they would work with the goal of moving talks on to trade next month. GBPUSD was also supported on Friday by better-than-forecast industrial data, and an estimate from the National Institute of Economic and Social Research that suggested economic growth had accelerated in October. Benchmark 10-year gilt yields rose to the highest in a week.
On the Dollar side: Fears of Delay To Corporate Tax Cut. USD traded lower against a basket of currencies on Friday as consumer confidence data fell short of expectations while ongoing fears over delays to corporate tax cuts continued to weigh on sentiment.
Key data in week ahead
Both UK and US economic calendar is full. Starting from Tuesday , sales and unemployment ( CPI , PPI, labour market data and retail sales ) data will be released on both sides. This week can set a clear signal for Cable’s further direction.
GBPUSD succeded to trade above the key Fibonacci Level ( Fibo 61.80% of the upwards movement from March ) 1.30300. This is the 200 support as well.Break out of this support may carry the price towards 1.28200.
In my previous article, I have pointed out 1.31800 as a key level for short-term trading. GBPUSD ended the week at 1.31870.
Above the current level, 1.32200- 1.32400 region is the resistance. Break out of this resistance will carry the price 1.33300.
Monday is “data free” day. Technicals will be in charge.
On the downside; 1.31600, 1.31200 and 1.30900 are the possible pullback levels.
I will publish our trade plan for premium members before the Asia Opening.