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GBP/USD Weekly Forecast - 7 May - 11 May

Saturday, May 05 2018
GBP/USD Weekly Forecast - 7 May - 11 May

Similar to its EURUSD counterpart, the GBPUSD ended Friday’s session with a three-week losing streak. Unlike the Euro, though, the pound began its descent with a bearish engulfing week. Since the April 17 swing high, the pair is down a massive 840 pips. And if we treat the highs from January 25 and April 17 as a double top, we’re looking at a move to 1.3200 over the next few weeks.

We get that from the 580 pip range between 1.3760 and 1.4340. Measuring 580 pips below the 1.3760 pivot gives us 1.3180, or 1.3200 to be a tad conservative.

However, keep in mind that sellers need to get through 1.3300 support first. Expect quite a lot of buying pressure to materialize in this area if tested.

As for resistance, the GBPUSD closed last week below the 1.3600 area. Speaking of last year, note that 1.3494 was the 2017 close. It’s no coincidence that the pair bounced from this area just before the weekend.

Sell on strength, but at the moment the 1.3600 resistance level and the 2017 close at 1.3494 acting as support don’t allow for a favorable risk to reward ratio.

More in this category: « AUD/USD Weekly Forecast - 7 May - 11 May EUR/USD Weekly Forecast - 7 May - 11 May »

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