Trading plan for November 1Today the British pound will be in the spotlight of the day. At first, we anticipate the level of manufacturing PMI at 12:30 MT time. Analysts expect it to drop to 53 points.
Today the British pound will be in the spotlight of the day. At first, we anticipate the level of manufacturing PMI at 12:30 MT time. Analysts expect it to drop to 53 points.
However, the main attention will be on the BOE monetary policy summary and the press conference held by Mark Carney. While there is no expectation of a rate hike, the GBP can be supported by the hawkish comments.
In addition, there will be a release of manufacturing PMI for the US. It’s forecast to decline to 59 points
Now let’s turn our attention to the charts.
Yesterday the UK Brexit minister Raab was confident about reaching the Brexit deal on the 21 of November. It lifted GBP/USD towards the resistance at 1.2895. Hawkish statements by the Bank of England can make the pair to stick above 1.2895. Negative news can push the cabel down to the support at 1.2704.
During the Asian session the Chinese equities traded in green, which increased the overall market sentiment. It made the aussie to cross the resistance at 0.7134 towards the next resistance at 0.7164 (50-day MA). If the USD is strong or the uncertainties across the equity market increase, the pair will drop below the support at 0.7077.
As for NZD/USD, the pair followed the same scenario. Up to now, it is testing the resistance at 0.6594. Strong USD will make NZD/USD to drop below 0.6529.