FxWirePro: GBP/USD gives back chunk of early gains, eyes another drop

• GBP/USD rose initially but gave ground as traders ignored U.S. shutdown news, focusing instead on upcoming economic data for Bank of England signals.

•The U.S. Senate advanced a measure on Sunday to reopen the government, ending a 40-day shutdown that disrupted federal workers, food aid, and air travel.

• The UK Office for National Statistics (ONS) is set to release its third-quarter reports on Thursday, covering both GDP growth and productivity.

• Last month’s ONS data showed UK economic growth of 0.1% in August, with July’s growth figures revised lower..

•A poll of   economists   expect  a modest 0.2% growth rate over Q3, while the Bank of England warned that uncertainty around the budget was stalling activity..

•Traders are also eyeing the late-November UK budget, with analysts expecting Finance Minister Rachel Reeves to raise taxes, though details are unclear.

•   Immediate resistance is located at 1.3100(Nov 7th low), any close above will push the pair towards 1.3255 (SMA 20)

•  Strong support is seen at 1.3006(Nov 7th low) and break below could take the pair towards 1.3021(23.6%fib).

  Recommendation: Good to sell around 1.3160 , with stop loss of 1.3250 and target price of 1.3000