Pound is in the catbird seat

The British pound remains positive based on the positive data on business activity in the UK manufacturing sector. According to published data, PMI in October was 56.3, while analysts expected a decline to 55.8. The growth of business activity is a positive moment in the conditions of Brexit, namely at the threshold of the November meeting of the Bank of England. It may raise the discount rate.

Technical analysis: Based on the positive yesterday’s dynamics of the British pound, the pair GBP/USD managed to gain a foothold above the resistance line of the downward channel on H1. And, this is a signal of a possible trend reversal in the short-term period.

• One should consider the resistance levels at the marks 1.3335; 1,3400.
• One should consider the support levels in the area of ​​1.3265; 1.3225.

Fig. Current price GBP/USD – 1.3292

Alexander Sivtsov