GBPUSD WEEKLY OUTLOOK COME DEC 2ND-DEC 6TH; TARGETS 100% BULLISH FIBONACCI PRICE TARGET:: SPECULTIONS STILL BULLISH::

FUNDAMENTAL BEAM

GBP/USD rallied for a fourth straight week, gaining over a cent. The pair closed the week at 1.6362. This week’s key releases are the PMIs and the BOE’s QE and Official Bank Rate decisions. Here is an outlook for the main events moving the pound, and an updated technical analysis for GBP/USD.

Here is a summary of major events during the week

1. Manufacturing PMI: Monday, 9:30. Manufacturing PMI continues to hover in the mid-50 range, pointing to steady expansion in the manufacturing sector. The index came in at 56.0 points last month, and the November estimate stands at 56.5.
2. BRC Retail Sales Monitor: Tuesday, 00:01. This indicator looks at retail sales in stores belonging the BRC chain. The indicator posted a gain of 0.8% last month, and the markets are hoping for another respectable gain in this week’s release.
3.  Halifax HPI: Tuesday, 3rd-6th. This housing price index is an important gauge of activity in the UK housing sector. The index posted a gain of 0.7%, last month, beating the estimate of 0.4%. The markets are expecting a gain of 0.8% in November.
4. Construction PMI: Tuesday, 9:30. Construction PMI looked very strong in October, coming in at 59.4 points. This beat the estimate of 58.9 points. Little change is expected in the November release.
5. BRC Shop Price Index: Wednesday, 00:01. This indicator measures inflation in goods purchased from the BRC chain. The index continues to post readings in negative territory, and the October release pointed to a decline of 0.5%.
6. Services PMI: Wednesday, 9:30. Services PMI has looked very strong, with recent readings above the 60-point level. Last month’s release came in at 62.5 points, and the estimate for this November stands at 62.1 points.
7. Autumn Forecast Statement: Thursday, 23:15. This release is issued annually. The statement looks at the economic outlook in the UK and previews the government’s budget for the coming year.
8. Asset Purchase Facility: Thursday, 12:00. With the UK economy continuing to expand, some policymakers feel a case can be made to reduce QE. However, the markets are expecting QE to remain at the current level of 375 million pounds.
9. Official Bank Rate: Thursday, 12:00. The benchmark interest rate has remained at 0.50% for almost five years, and the BOE has been quite clear that it does not intend to raise rates in the near future. The Bank will announce the December rate through its Rate Statement.
10. Consumer Inflation Expectations: Friday, 9:30. This quarterly indicator helps analysts track actual inflation in the UK. The indicator dropped to 3.2% last month, a four-month low. If the indicator drops below the 3% level, this would mark the first time this has happened in almost four years.

TECHNICAL BEAM

 

TECHNICAL BEAM

GBP/USD after breaking a 2-months high technical resistance still holds much bullish expectations.
Market price currently stands at 1.63361 but is subsequently expected to continue north-east of the chart, targeting a  bullish price of 1.6845 on the daily timeframe.
We should as well expect further upside move if market sentiments for bullishness remain stongly positive; targeting a weekly price of 1.7402 which is just 100% of the Fibonacci sequence.

 

NOTE: Price predictions produced by FibonacciPrice&PatternTrader may be affected by unforeseen events like hurricane, earth quake, flood and other natural disasters consequently changing price patterns already predicted. Hence we advice strict adherence to money management techniques.

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