Recent price action suggests GBP strength against USD. Our view is that the FED won't raise rates in December. Regardless, the only effect this news has on the prediction is that at that time the market price action might be a bit cagey.

On the weekly chart we see MACD being bullish and Cable on its way to break a channel and try for 1.59, a previous top. Nevertheless, with currency price actions acting out of the ordinary--meaning no strong trend following after a major break, especially one after serious sideways movement,we cannot make a call for 1.59 or higher.

Looking at the Daily chart, we already see a channel break and with price moving firmly toward 1.55, a previous top and 50% fibo level. With the next fibo level at 1.558 and a 1-month time-frame a call for either price level seems too small a movement even accounting for corrections and renewed efforts to those level.

Taking a different view on the weekly chart, using only this month's price action we see a 156.20 price at the fibo level on the way up, which feels a little bit more appropriate accounting for the pair's recent strength. In any other time period before 2015, we'd assume an easy run to the 161.8% fibo level at 1.5760 and the pair to correct around 1.5620 or 1.55 if resistance was too strong at the top. Due to the almost 200 pip movement from current levels we see that as a possibility even under current conditions, so we pick that level as our prediction.

Weekly Chart

Daily Chart
Weekly Chart 2
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