The GBP/USD has developed a corrective pattern that suggests more strength in the near term. However, based on the recent precedents we should expect that any rally to be sold off. The current price structure also suggests that it will be quite hard to break above the last week high of 1.3444 and any rally should fade below the big psychological figure 1.3500. We have an intermediate intraday resistance level at 1.3370 but only a break of the 1.3444 should warn for more upside. To the downside, the first level of support comes in the 1.3200-1.3150 regain from where we should expect a bounce. The highlights of the week will be the CPI inflation figures scheduled on Tuesday, but the main risk event remains the BOE rate decision scheduled on Thursday. The Pound’s decline is helping inflation to rise and based on the market expectation we should see a tick higher in the CPI figures from -0.1% up to 0.4%, while the annualized Core CPI data is expected to inch higher from 1.3% to 1.4% which in the end can be the catalyst for some bullish GBP/USD momentum. After cutting the rates to 0.25% for the first time in the last 7 years, the BOE will most likely refrain for easing further and we should expect a plan outlined by the additional QE program.

GBPUSD Weekly Forex Forecast - 12th to 16th Sept 2016 - BULLISH

GBPUSD might be able to head south a little more but with trendline support not far away, we expect a bounce from the trendline support. This is further confirmed by Stochastic which is already in the oversold zone which could give us a hint that the bears might be taking the back seat this week. We expect a Bullish week ahead.