Weekly Technical Outlook: GBP/USD; Market Forecasts for February 5th – February 10th

• Resistance level 1.26795
• Pivot Level 1.25908
• Support Level 1.22388, 1.2185 and 1.2039

Technical Analysis

Daily bias in GBP/USD remains bearish with 1.26795 resistances intact.

Deeper decline is still expected for GBP/USD pair as long as resistance holds the area. The price action stays below resistances so far at this point closing below the levels. Such decline is viewed as a correction.

Thus, we’d expect resistance to hold the area and pair remains bearish this week indicating bearish reversal.

The pair has an outlook to continue towards the downside bias with price action signaling an engulfing bar with rejection at resistance area closed below the trend line.

Stochastic is currently at 79.0 levels with the pair closing below the rejection of trend line indicating a trend reversal shifting the momentum.

Current development suggests that the medium term downside is expected to be further low. When there is a break in 1.2238 levels, it should make lower lows with 1.2185 levels.

Economic

• BRC Like-For-Like Retail Sales, RICS Housing Price Balance, Manufacturing Production,
• Industrial Production, NIESR GDP Estimate
• FOMC Member Harker Speech, Trade Balance, Consumer Credit Change, 10-Year Note Auction
• EIA Crude Oil Stocks change, Continuing Jobless Claims, Initial Jobless Claims
• Michigan Consumer Sentiment Index

Area of Interest

• Strong resistance at 1.26795 area and closed below resistance levels.
• Bearish reversal strongly closing below the rejection of trend line with engulfing bar signal.
• Price action closed below trend line and oscillator below 79.0 levels indicating shift in momentum.
• At Flip Area on Daily time frame resistance levels.

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