FX.co ★ Forecast for GBP/USD on November 6, 2023

GBP/USD

It appears that the British pound had been preparing for a bullish breakout, as it has been consolidating for a while. GBP/USD surged by 180 pips due to moderately weak U.S. employment data on Friday. Along the way, the price broke through the resistance range of 1.2271/87 and the MACD line on the daily chart.

The target range of 1.2430/47 is just ahead, formed by the price channel line and the extreme levels from last December. The price can start a corrective move from this range, but afterwards, we expect the pair to rise towards the target levels of 1.2524 (April 4th high) and 1.2617 (the average low from August 3rd and 14th).

On the 4-hour chart, there is a minor correction. The correction is supported by the MACD indicator line at 1.2335 on the daily chart. Once the corrective phase ends, we expect the pair to move to the target range of 1.2430/47.

Today, in the UK, the Construction PMI for October will be published, and an increase from 45.0 to 46.0 is expected. This data could provide support for the pound.