GBPUSD remained is a volatile sideways mode between 1.5923 and 1.5768. The downward move of Thursday found support almost at 55-day EMA level and on Friday the support came from 22-day EAM level and the currency pair closed for the week at 1.5869.
For the next week we stay neutral. Some upward moves may take place to retest 1.5923 and GBP/USD breaks above 1.5923 then we would expect some upward move towards 1.5960 to 1.5990 resistance zone. Please note that since January 30th, GBP/JPY has been having a volatile sideways move between 1.5500 and 1.6000. Both these levels are psychological support and resistance levels and we can expect further volatile moves between these. A directional move should take place only with a decisive break of either of these levels but we favor the downward side. On the upside any decisive break over 1.6000 should take GBPUSD towards 1.6165.
On the downside a break of the low of the last week i.e. 1.5768, which will represent the break of 55-day EMA support as well as the break of the lower edge of the daily Ichimoku cloud, should bring further downward move towards the range of 1.5650 to 1.5620. But overall, as mentioned above, we need to wait for a break of either of the psychological levels to expect any real directional move and trend.
Further Readings:
1) GBP/USD forecast for weekly outlook of the currency pair.
2) Daily GBP/USD technical analysis.
By forexabode.com
