FxWirePro: GBP/USD drops to two-week low as dollar catches bid

• GBP/USD slipped two-week low on Thursday  as the U.S. dollar strengthened ahead of Powell Speech.

• The U.S. government shutdown stretched into its ninth day  , with the Senate once again rejecting rival funding proposals from Republicans and Democrats, leaving the stalemate unresolved.

•Markets will focus on Fed Chair Jerome Powell’s upcoming speech at 12:30 GMT, with investors looking for his take on the shutdown’s effect on the economy and rates.

• Meanwhile,Bank of England policymaker Catherine Mann said on Thursday that inflation expectations in Britain remain elevated, arguing that interest rates must continue to apply pressure on price growth.

• Last month, Mann sided with the majority of the Monetary Policy Committee in voting to keep the Bank of England’s benchmark rate unchanged. In August, however, she was among the minority opposing a cut to 4%.

•   Immediate resistance is located at 1.3411(50%fib), any close above will push the pair towards 1.3484(SMA 20)

•  Strong support is seen at 1.3321(38.2%fib) and break below could take the pair towards 1.3277(Lower BB).

  Recommendation: Good to sell around 1.3380 , with stop loss of 1.33450 and target price of 1.3320