GBP/USD Weekly Forecast – 5 October – 9 October
Sterling continued its downtrend during the last week, breaking below 1.52 handle which was major support for long time, which indicates serious downtrend. Pair even tested 1.52 handle few time, but did not manage to find enough strength for a decisive break above this area, despite much weaker than expected US NFP figures. Focus of next week will be on BoE interest rate decision
and the following minutes. More dovish tone would push pair lower possibly all the way to 1.50 handle, though we expect initial support around 1.51 area. On the other hand, hawkish minutes would bring rebound to the pair but with initial resistance around 1.53 handle and 1.5350 level, as this area was previously quite supportive. Long-term looking, we have no interest in buying this pair, as there is plenty of resistance all the way to 1.55 handle. We would be sellers only for this pair with a target set at 1.50 handle though there is a possibility of a break lower.
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