Weekly Technical Outlook: GPB/USD ; Market Forecasts for May 8th – May 12th

• Resistance level 1.3064, 1.3164, 1.3254
• Pivot Level 1.2946
• Support Level 1.2836

Technical Analysis

The GBP/USD pair closed the weekend trading above 1.2836 levels. After testing the levels and bouncing back, the pair gets good support base that reinforces the expectations of continuing the bullish bias, providing signals for the price recovery in the upcoming days.

This is supported by stochastic positivity that appears clearly on the daily time frame, rising above 86.0 levels. The pair remains bullish for the moment, trading on rebound after testing barriers. This makes the trading settle now at the support area that appears in the chart.

Some consolidations would be seen with bullish momentum with the price action producing two bar reversal. A further rise is expected from current levels on the new found support area. With the beginning of the new trend and the first main target located at 1.3064, a break at this 1.3164 level will push the price to resume its bullish trend with its next target located at 1.3254 level.

Economic

• BRC Like-For-Like Retail Sales, Manufacturing Production
• Industrial Production, BoE Interest Rate Decision, BoE Asset Purchase Facility
• BOE MPC Vote, NIESR GDP Estimate
• FOMC Member Mester speech Labor Market Conditions Index, FOMC Member Kaplan Speech
• Import Price Index, EIA Crude Oil Stocks change, Initial Jobless Claims
• Retail Sales control group, Consumer Price Index, Michigan Consumer Sentiment Index

Area of Interest

• Strong support at 1.2836 areas and closed above rebound of trend line.
• Bullish momentum above the support area with two bar reversal.
• Price action closed above rebound of trend line and oscillator rising above 86.0 levels indicating shift in momentum.
• At Flip Area on Daily time frame support levels.

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