GBP/USD Weekly Forex Forecast – 5th to 9th Feb 2018
The GBP/USD price action was contained inside the last week price range which may indicate that going forward more ranging activity should be expected. The key resistance level remains the current yearly high 1.4344 which should contain any rally. However, a break and a daily close above this resistance level can open the door for more bullish momentum.
On the downside, last week low 1.3980 remains our key support level, but more importantly the big psychological number 1.4000 should be the line in the sand between the bulls and bears. The stochastic indicator has moved near oversold territory which indicates that we can see early in the week another attempt to break higher. The UK economic calendar has scheduled some major risk event that can disrupt the market volatility. On Thursday, we have the BOE interest rate decision and monetary policy which can set the trend for the British Pound. According to the market consensus is for no change in the interest rate policy but the market is waiting for some clues that might suggest that the BEO is ready to hike for the first time in a decade in May.