GBPUSD Weekly Forecast Oct 20 2014


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 .

GBPUSD Weekly Forecast Oct 20 2014

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 ..