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GBP/USD: forecast for Nov. 27 - Dec. 1
GBP/USD managed to strengthen during the last week. Such move was largely due to the weakness of the US dollar.
On the pound’s side, the market keeps waiting for some Brexit news. The main issue is that the European Union wants Britain to pay for its exit, and Britain considers the sum too big. There were media reports that Theresa May managed to convince members of her cabinet to increase the offer. Such rumors helped the pound strengthen. Note, however, that the general public in the UK will likely oppose such decision. The Office for Budget Responsibility (OBR) cut Britain’s growth forecasts. This, however, was no surprise for the market, so it didn’t hurt the pound.
British events to watch for in the upcoming days include the release of bank stress tests results and Inflation Report hearings on Tuesday and manufacturing PMI on Friday. Seven largest British lenders are expected to pass the tests, although the results will reveal how much spare capital they can return to investors.
It seems that this year’s support line at 1.3150 has once again managed to limit the downside. If the pair stays above 1.3300, it will be able to get towards 1.3450/1.3500, where it will find a major resistance. Support is at 1.3250 and 1.3150.
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Let’s consider the most important events for the upcoming days.
The most significant event today is the release of the average earnings index for Great Britain at 11:30 MT time.
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The market will be mostly driven by the risk-on sentiment after the positive news on trade negotiations between the US and China. Let’s consider the key levels for AUD/USD and AUD/NZD.