The GBPUSD is in the process of reversing the previous trend or at least to develop a significant pullback after it has posted a massive bearish divergence on the daily chart. The also Cable made a new yearly high touching the 1.4376 level from where it sold off because the move was lacking the necessary momentum to push forward. We’re also trading below the big psychological level 1.4000 which is extremely bearish from a technical point of view.
Only a strong weekly and daily close above the 1.4000 can put the bulls back on the spot until then we should expect further weakness. On the downside the first major level of support only comes at 1.3715 but we can’t rule out first a false break below 1.3715 before any significant rally to be seen. The Pound strength since the beginning of the may weigh on the BOE’s ability to hike rates in the near future. The BOE Governor Mark Carney in recent comments has also hinted that a raise in interest rates during May meeting is less probable which has been the catalysts for the bearish momentum seen recently with the GBPUSD.
Previous GBPUSD Monthly and Weekly Forex Forecast
GBPUSD Monthly Forex Forecast for May 2018
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