GBP/USD Weekly Forex Forecast – 19th to 23rd Feb 2018
The GBP/USD has managed again to break above the big psychological number and more than just that we manage to post a weekly close above. This suggests that at least in the short term we should see some more bullish momentum. On the upside the first level of resistance comes at the yearly high level 1.4315 but it’s very unlikely it will be retested in the upcoming week. However, on the other side a break and a daily close below 1.4000 can potentially open up the door for a retest of support level 1.3770. The stochastic indicator is in neutral territory coming of off overbought zone so it doesn’t suggest yet that we have extreme conditions in this market.
The UK economic calendar has some risk events that can produce some volatility. On Wednesday, watch the UK unemployment rate which is expected to remain at historic low. On the same day we can note the Inflation Report Hearings which is a high impact new event. Last but not least we have the UK Preliminary GDP figures for the last quarter of 2017 which based on the market consensus is expected at 0.5%.