The GBPUSD found strong support above 1.5850/1.5900 as suggested in the daily forecast last week , rebounded and printed a new resistance at the 1.6125 levels , what options do we have for GBPUSD , let’s focus first on the most critical data which may influence GBPUSD pair this week :
Tuesday , Oct 21 2014
- US will release its report on Existing Home Sales.
Wednesday , Oct 22 2014
- US will release its data on Core CPI (MoM) (Sep) .
Thursday , Oct 23 2014
- UK will release data on Retail Sales (MoM) (Sep).
- US will release its weekly report on initial jobless claims.
Friday , Oct 24 2014
- UK will release data on GDP (QoQ) & (YoY) (Q3)
- US will end the week with its report on New Home Sales (Sep).
Events will be discussed during the week …..
Technical Outlook :
Outlook in GBPUSD has turned neutral with risk to the downside , resistance comes at the 1.6125 levels , a failure to hold above the 1.6125 levels on a weekly closing basis , could mean a return to the 1.6000 levels ahead of the 1.5873 levels , a cut will resume fall from 1.7190 towards the 1.5680 levels ahead of the 1.5500 levels.
On the upside , resistance comes at the 1.6125 levels , break of the 1.6125 levels on a weekly closing basis , will put the pair in recovery mode , but recovery mode above the 1.6125 levels should be contained well by the 1.6525 levels .
In all , as long as resistance 1.6125 holds on a weekly closing basis , outlook in GBPUSD remains on the downside towards the 1.6000 levels ahead of the 1.5873 levels , but the pair faces a recovery risk above the 1.6125 levels .
Conclusion : According to weekly chart , overbought zone is above 1.6125 levels , so any negative data around this level is likely to accelerate the expected bearish move , positive data will challenge / expose 1.6125 levels since we have a reversal candle on the weekly time frame ..