Weekly Technical Outlook: GBP/USD ; Market Forecasts for October 23rd – October 27th

• Resistance level 1.3210, 1.3279, 1.3349
• Pivot Level 1.3167
• Support Level 1.3097

Technical Analysis

The GBP/USD pair closed weekend is trading above the 1.3167 level and gets a good support base that reinforces the expectations of continuing the bullish bias. This provides signals for the price recovery in the upcoming days. The pair is supported by stochastic positivity that appears clearly on the daily time frame and rises above the 42.0 levels. The pair remains bullish for the moment with pair trading on rebound after testing barriers. This makes the trading settle now at the support area that appears in the chart. Some consolidations would be seen with bullish momentum. A further rise is expected from current levels with the price action signaling pin bar reversal on the new found support area and beginning of the new trend and the first main target is located at the 1.3210 level. This point that the pair breaking at the 1.3279 level besides holding above it will push the price to resume it with bullish and its next target is located at the 1.3349 level.

Economic

• Gross Domestic Product, Inflation Report Hearings
• Chicago Fed National Activity Index, Markit Manufacturing PMI, Durable Goods Orders
• New Home Sales, Initial Jobless Claims, Goods Trade Balance, Gross Domestic Product Annualized

Area of Interest

• Strong support at 1.3167 areas and closed above rebound of trend line.
• Bullish pin bar reversal strongly closing above the support area.
• Price action closed above rebound of trend line and oscillator rising above 42.0 levels indicating shift in momentum.
• At Flip Area on Daily time frame support levels.

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