GBP/USD had a turbulent week with the government and the BOE both impacting the currency and eventually finished higher. The upcoming week sees the Bank Stress Tests and the first PMI for November as we enter the last month of the year. Here are the key events and an updated technical analysis for GBP/USD.
Brexit negotiations provided some good news for a change: the May government is warming up to pay the EU its demands according to reports. This helped GBP/USD advance, as did the weakness of the greenback due to the Fed expressing worries about inflation. Yet in the UK, the government lowered its GDP forecasts and the GDP report was not that great. While the headline remained at 0.4% q/q, the construction sector is now officially in a recession.
Updates:
GBP/USD daily graph with resistance and support lines on it. Click to enlarge:
