• GBP/USD climbed on Wednesday as the U.S. government shutdown pressured the dollar, with traders factoring in potential delays to key economic reports that influence Fed policy.
• The shutdown began after the Senate rejected a short-term funding bill that would have extended operations until Nov. 21.
• The shutdown poses a risk of postponing critical economic data releases, potentially complicating the Federal Reserve’s monetary policy assessment.
• The ADP National Employment Report, due later today, is expected to provide further insights into the US labor market.
•Meanwhile,data showed British manufacturing activity shrank at the fastest pace in five months in September, The S&P Global UK Manufacturing PMI dropped to 46.2 in September from 47.0 in August, matching the preliminary estimate and economists’ expectations..
• Immediate resistance is located at 1.3508( SMA20), any close above will push the pair towards 1.3520(38.2%fib)
• Strong support is seen at 1.3416(Sep 30th low) and break below could take the pair towards 1.3342(50%fib).
Recommendation: Good to buy around 1.3470, with stop loss of 1.3400 and target price of 1.3550
