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The previous trading week proved to be neutral and at the same time, quite mixed. The pair gained momentum on Wednesday, after data showed that the UK economy grew in line with expectations in the second quarter, adding to optimism over the health of the British economy. Moreover, the next day, the Sterling continued its positive tendency and edged higher against the US Dollar, even after data showed that manufacturing activity in the UK expanded at the slowest rate in three months in September. According to the US Labor Department, the US economy added just 142,000 jobs last month, well below expectations of the 203,000 expected by economists.
Dukascopy Community members are betting on a bullish scenario, as they expect the price to hit 1.5342 by this Friday. Moreover, 66% of respondents are bullish on the pair.
Concerning the expectations of Dukascopy Community traders, "This pair was bearish to me in the middle-term, after the price violated and came down from the 1.5560 (1.5515-1.5595 range) resistance area. There is a very high possibility that price will break out from the support area where it have been moving for five days and continue the decline." claims csan86, supporting bearish outlook. In contrast, TRENDMASTER sees a bullish signal "The GBP/USD may resume uptrend ahead of BOE rate decision on Thursday, with strong bull trend on weekly time frame. Also, due to the weak US fundamentals Cable will appreciate this week." Speaking about the important economic data, on Wednesday, the UK is to publish data on industrial production, while the next day the BoE is to announce its monetary policy decision.
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