The GBPUSD maintained a bullish momentum last week. Opened at 1.2268 levels. Closed at 1.2500 Levels. Now the focus will turn to 1.2500 levels. The GBPUSD will have to break and hold above the 1.2500 levels on a weekly closing basis to push the market for further upside gains. If seen it will target 1.2660 levels. A halt is likely, it may test 1.2500 levels before attempts to break above 1.2660 levels. Anyway; above 1.2660 aims the 1.2830 levels. Furthermore, resistance comes at 1.3040 levels.
Alternatively, a failure to break and hold above 1.2500 levels on a weekly closing basis could mean a return to 1.2268 levels. A halt is very likely, it might consolidate around 1.2268 for a while before the next move. However; Below 1.2268 aims the 1.2140 levels. Furthermore, support comes at 1.1957 levels.
In conclusion: The GBPUSD sees consolidation move above 1.2268 with a possibility to break higher in the medium-term forecast.
MACD is bearish, %R (Williams) indicator is in the overbought area means there’s no enough bullish momentum to push the pair beyond 1.2500 levels. As a result; the pair may return to 1.2268 levels to get the needed momentum before attempts to break above 1.2500 levels. Anyway; If 1.2268 fails to hold ( very likely) the pair will fall to 1.2140/1.1950 levels…
The second option: If 1.2268 holds, the pair may consolidate below 1.2500 before the next fall. Only a sustained breakout on a weekly closing basis above 1.2500 will turn the outlook bullish. Next resistance comes at 1.2660 levels, a halt is likely, it may test 1.2500 before the next up. Above 1.2660 paves the way to the 1.2830 levels ahead of 1.3040 levels.
The last option: The pair may spike to 1.2660 levels then closed below 1.2500 levels in the same week. If seen; this scenario will suggest a large reversal. On the downside, below 1.2268 will challenge1.2140/ 1.1950 levels… On the upside, only a weekly closing above 1.2660 will turn outlook bullish and pave the way to 1.3000 levels…