GBP/USD Weekly Forex Forecast – 29th Jan to 2nd Feb 2018
The GBP/USD bullish run reached new higher grounds extending above the big psychological number 1.4000. Now we should expect any sell of below 1.4000 to be faded if we want to bullish trend to remain intact. However, a daily break and close below 1.4000 will set in motion a much bigger retracement that can possibly send GBP/USD as far as 1.3850 the first significant support level.
On an intraday basis the first area of support comes at 1.4040. On the upside, the first level of resistance comes at the last week high around 1.4315 which has high chances to hold as the current trend has run too fast in a very short period of time. The stochastic indicator is in neutral territory and doesn’t provide us with any clues to the possible next move. The UK economic calendar will only bring only some modest risk events that can generate some volatility. On Tuesday we have BOE’s Governor Carney speech which can potentially drive GBP/USD. From the other side of the monetary policy spectrum we have plenty of other risk events. On Wednesday, we have the Fed interest rate decision and according to the market consensus the interest rate policy should be left unchanged.