The GBPUSD weekly close below the big psychological number 1.2500 indicates more bearish pressure in the short to medium-term. However, a daily break and close above 1.2500 can signal a shift in the sentiment and can make the bearish case less likely to unfold. To the downside, the first level of support comes in at 1.2300 followed by 1.2200 which can produce a reaction to the upside. We can note on the stochastic indicator a build-up in bearish momentum which is one of the reasons why we favor more the downside as long as we trade above 1.2500. The UK economic calendar doesn’t have much to offer us in terms of risk events. The only notable economic data are the second estimate of the UK GDP for the last quarter of 2016. The preliminary figures beat expectation as the UK economy grew 0.6% and based on the market consensus we should expect a flat reading. Wednesday we also have the FOMC Meeting Minutes which will provide in-depth insights into the latest FOMC meeting. This is crucial for the interest rate expectations as it will clear the view of whether or not a March interest rate hike is on the table. Previous GBPUSD Weekly Forex Forecast

GBPUSD Weekly Forex Forecast - 20th to 24th Feb 2017 - Bearish