Last week GBPUSD opening gap followed by a quick rally has produced what in technical terms we refer to as a “V” shape bottom. This is a very powerful pattern that can produce a swing low point and it can be an indication that the bulls are in control. The Brexit fears are already priced in and despite the prospects of a hard Brexit, the British Pound seems ready for a much deeper correction. However, we still need confirmation and a weekly break and close above the 1.2500 big psychological number will be sufficient for the bulls. The stochastic indicator is showing a buildup in the bullish momentum and only a break below 1.2200 will invalidate the bullish case. We can expect a reaction from 1.2300 intraday support level. To the upside, we have the 1.2432 as intraday swing high which can act as resistance. The UK economic calendar will bring on Thursday the GDP figures for the last quarter of 2016. Based on the market consensus the Q4 GDP figures are expected to shrink to 0.5%, down from 0.6% while the annualized GDP figures are expected to come in at 2.1%. Previous GBPUSD Weekly Forex Forecast

GBPUSD Weekly Forex Forecast - 23rd to 27th Jan 2017 - Bullish