• Cross spotted with a double top, fails at 0.90
  • Hovering above 20Dsma for seven straight sessions

Over the weekend BOE Governor Carney remains in the limelight as rumors flew Carney might leave his position in 2018.

On Monday’s session, Financial Times reported, Mark Carney, governor of the Bank of England, is ready to serve a full eight-year term, facing down Brexiter critics campaigning for him to resign ahead of time.

The pound rebounds between 0.30 and 0.70% against the crosses.

Reuters reported, Carney met May for an hour and forty minutes in Downing Street on Monday, Sky News reported.

“The talk of Carney not taking up the extra three years after 2018 has rattled investors in what is a very uncertain outlook,” said Philip Shaw, chief economist at Investec.

“Until his decision to stay on is formally acknowledged, markets are correct in treating the situation as uncertain.”

Review:

UK GDP was estimated to have increased by 0.5% in Quarter 3 (July to Sept) 2016 compared with growth of 0.7% in Quarter 2 (Apr to June) 2016.

Germany Retail turnover in September 2016 plummets

Euro area annual inflation is expected to be 0.5% in October 2016, up from 0.4% in September 2016

Seasonally adjusted GDP rose by 0.3% in the euro area and by 0.4% in the EU during the 3Q of 2016

Preview:

Tuesday-October Manufacturing PMI forecast 54.5 vs 55.4

Wednesday-October Construction PMI 51.8 vs 52.3

Thursday- October Services PMI 52.4 vs 52.6

Friday- BoE inflation report, BoE interest rate decision, and Monetary Policy summary

ANZ reported, Leveraged funds were also net sellers of GBP. Net GBP shorts rose by USD0.3bn to USD6.5bn, near recent lows over Brexit concerns.

Technical view: The cross has been hovering above 20Dsma and spotted with a double top. The cross remains in a tight range between 0.9030 and 0.8880 levels.

Earlier the cross spotted with a double bottom finds at 0.8880 below this 0.8810/0.88 exists.

Alternatively, supply zone remains between 0.9030 and 0.9060, If taken out 0.91 and 0.9130/0.9150 possible. The cross remains weak around 0.90 levels.