GBPUSD:
The pound weakens against the dollar in step with the broader strength of the US currency and rising caution across global markets. In the UK, investor attention is fixed on the parameters of the November budget and assessments of fiscal sustainability: the risks of higher tax burdens and a slowdown in business activity limit demand for the pound.
Comments from Bank of England officials indicate the need to keep the policy rate elevated for longer due to persistent inflation expectations, but this does not translate into firm currency support when the dollar is strong. At the same time, political and financial headlines from Europe and Japan are pushing the dollar index higher, intensifying pressure on cable. Quote feeds show GBPUSD trading around 1.3310–1.3320, and intraday notes point to fresh two-week lows this week. In these conditions, we maintain a moderately aggressive sell plan from 1.3315 with a tight protective stop and a 1.3205 target.
Trading recommendation: SELL 1.3315, SL 1.3365, TP 1.3205
Origin: FreshForex
