The GBPUSD recovered strongly last week, printed a new support at the 1.5893 levels, this development leaves the pair targeting the 1.6259 levels ; to resume its upside offensive ,the GBPUSD will have to hold above the 1.6259 levels on a weekly closing basis ,If seen ,It will target the 1.6380/1.6440 levels where a breach will turn focus on the 1.6750 levels.
Alternatively , a failure to hold above the 1.6259 levels could mean a return to the 1.5893 levels, losing this level on a weekly basis will bring deeper fall towards the 1.5426 levels.
Overall, the pair is likely to consolidate with bullish bias above the 1.5893 levels with risk towards the 1.6259 ahead of the 1.6380 levels.
Support and resistance levels (weekly chart) : 1.4813 , 1.5204 , 1.5426 (main) , 1.5505 ,1.5716 ,1.5893(main), 1.6259 , 1.6380, 1.6440,1.6750, 1.7000
Trend Strength (Weekly Chart):
- Bullish : above 1.6259
- Neutral : below 1.6259
- Bearish : below 1.5893
Recommendations : buy after rejection above the 1.5893 levels ( daily basis ),OR short after rejection below the 1.5893 levels (daily basis).