GBP/USD Analysis Report: Bulls pause at 1.1550 as they wait for the UK budget plan and the US midterm elections.

VOT Research Desk

During the four-day rise, the GBPUSD seesaws about the mid-1.1500s as bulls and bears compete in the early hours of Wednesday.

Although the recent market worry may have tested the bulls recently, the Cable pair’s gains in the past may have been related to the general US dollar weakening.

The results of the US midterm elections are one of the major triggers that questioned the prior risk-on attitude.

The UK’s upcoming publication of a new fiscal plan, as well as China’s current covid problems , are also topics of discussion. It should be mentioned that at a panel discussion at the UBS European Conference in London, headlined Global Monetary Policy Challenges, Bank of England (BoE) Chief Economist Huw Pill raised recession worries.

BoE will take the necessary steps to bring inflation back to 2% on a sustainable basis, the policymaker further stated. In other news, China reports the highest number of new COVID cases in six months (8,335 as of November 2008), which coincides with a brand-new virus-led lockdown in Guangzhou’s second district.

Additionally, according to the most recent polls reported by Reuters, Republicans are expected to take control of the House of Representatives and potentially the Senate, which raises questions about raising the US debt ceiling the following year.

Ahead of Thursday’s crucial US Consumer Price Index (CPI) for October and Friday’s release of the British Gross Domestic Product (GDP) for the third quarter (Q3), risk triggers are increasingly crucial for establishing unambiguous orientations.

GBP/USD Technical Analysis

Around 1.1600 at the time of publication, the GBPUSD reverses course from a downward-sloping resistance line from early September.

However, the pair’s successful trading above the 50-DMA, at 1.1330 at the latest, together with the bullish MACD signals and stable RSI (14) help to maintain the buyers’ optimism.