GBPUSD Weekly Forex Forecast – 19th to 23rd Sept 2016

The GBP/USD technical pattern has shifted back in bearish mode after last Friday sell off. However, the failure to provide a weekly close below the psychological figure 1.3000 keeps the hope for the bulls intact, but the bullish momentum should fail once again and a break below 1.3000 should be expected after a small bounce earlier in the week towards 1.3070 minor resistance level. A break below 1.3000 should expose the 1.2864 August’s low followed by the 1.2794 the Brexit low.

The Stochastic indicator may look oversold however, we have to keep in mind that during strong trends when the market is in expansion movement, it’s quite normal for the market to stay oversold and continue moving to the downside in the direction of the prevailing trend

The US Fed rate decision is the highlight of the week and our baseline scenario is for the Fed to keep monetary policy unchanged in which case the obvious reaction is for the US Dollar to react to the downside. However, the Fed rate decision is followed by the Fed Chairwoman Janet Yellen’s press conference, which can deliver a hawkish speech that can encourage more US Dollar buying.

GBPUSD Weekly Forex Forecast – 19th to 23rd Sept 2016 – BEARISH

GBPUSD broke through major support and price momentum seems to have some strength left to go further south although we suspect it might not have too much strength left. Stochastic is already into oversold territory and we expect some kind of reversal or consolidation to happen soon. For this coming week, we are bearish on GBPUSD and we expect it to dip a little more south…