Weekly reviews

Weekly GBPUSD market technical outlook

GBPUSD
Weekly chart:

Mighty bullish engulfing tells about high probability of further recovery of the british pound quotes.

However, state of ADX doesn’t correspond to breaking scenario, therefore we can expect one more serious downward correction in direction of the middle Bollinger band (1.2905), afterwards market will be ready to break the upper band (resistance 1.3281).

Expectations:

Main scenario: Downward pullback to the 1.2905 zone.

Alternative scenario: Break above 1.3281 and further impulse growth in direction 1.3670.

Trading recommendations:

  1. Shorts from 1.3281 to 1.2095.

  2. Longs from the 1.2905 level.

  3. Longs to break 1.3281 towards 1.3670.