The GBP/USD reversed its current uptrend on Monday at the beginning of the week and continued to see weakness all through the week’s trading session. With all its weakened economic indicators released the previous week, which includes its CPIy/y, Unemployment rate and Retail sales, the GBP currency remains in a poor state.
Medium term bias in the pair for the week remains slightly on the downside as the pair is supposed to have topped out 1.68213 to form a resistance and now in a pull back or retrace mode. More supply to 1.65365/1.64710 (Fibonacci levels 50.0 and 61.8) supports could be seen from the current rise from 1.62515 to 1.68213.
However in the larger picture, a clear break of the 1.68213 resistance with volume supporting will resume the uptrend in the pair. Key economic indicators to watch out for in the coming week include its Second Estimate GDPq/q scheduled on Wednesday and Central Bank Governor carney speech which is also scheduled on Friday, as this would determine whether more weakness or strength would be seen in the GBP economy.