The GBPUSD pair started its bullish rally after hitting the low of 8th October at 1.2198. The rally extended towards the high of 21st October at 1.3011 (1.3000 is major psychological level). From this level, Great Britain Pound started to lose its bullish vibe and things were furthermore intensified after the 128k new jobs were added to the U.S economy. GBPUSD index is now testing the support of trend line drawn from the low of 24th October. Bullish bounce from 1.2871 might bump up the price in GBPUSD pair. On the contrary, breaking below the support that and 61.8 retracement zone at 1.2863, might result in a sharp fall.
On the upside, bounce off from the support zone at 1.2871 might push the GBPUSD index towards the next resistance at 1.2970 which is also the high of 1st November. GBPUSD index breaking above that level might result in the retest of the high of October 21 at 1.3011. However, clearing the resistance at 1.3011 will be a very tough job for the bulls due to political instability in the Britain Economy. So, we might experience a ranging market in the upcoming week. However, the traders are advised to stay extremely cautious until the Brexit issues get solved.Download our latest quarterly market outlookfor our longer-term trade ideas.
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