Technical Talk:GBP/USD 31-10-2019

GBP/USD Forecast: Halloween Party set to continue thanks to the Fed and Farage Our preference: long positions above 1.2935 with targets at 1.2985 & 1.3005 in extension.Alternative scenario: below 1.2935 look for further downside with 1.2895 & 1.2870 as targets.

Comment:
GBP/USD has been extending its gains after the Fed’s decision.
Speculation about the UK elections is set to determine the next moves.
Thursday’s technical chart is pointing to further gains.
Trick or treat? Brexiteers may feel tricked on Halloween – which was supposed to be Brexit Day – the third one. GBP/USD is on the rise, but the main driver is the US Federal Reserve rather than any UK event.

The Fed cut interest rates for the third time as expected and signaled a pause.
The US Dollar advanced at first, but then changed course and fell,
as Chair Jerome Powell indicated that the bar for raising rates is high.
The bank would like to see a significant rise in inflation before hiking,
while the threshold for cutting again seems lower.

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