The GBPUSD technical pattern looks constructive for a bounce and the current base consolidation pattern can provide us with the necessary momentum for eventually breaking up and retest the big psychological number 1.2500. However, a loss of the 1.2100 level can undermine and delay the bounce and can set the right condition for a break below the 1.2000 which is the Flash Crash low established three weeks ago. The stochastic indicator shows extreme oversold conditions in multiple time frames, which warns us that we can be in the early stage of a bounce. To the upside, the first obstacle is at 1.2330 intraday resistance level. The major risk events for the British Pound are the BOE Governor Carney’s speech which is due to speak in front the House of Lords Economic Affairs Committee, in London. The main topic will be the consequences of the Brexit vote and Carney’s remarks can have the potential to disrupt the FX volatility. Secondly, on Thursday we have the Preliminary GDP figures and based on the market consensus we should expect a flat reading of 2.1% annualized rate of growth.

GBPUSD Weekly Forex Forecast - 24th to 28th Oct 2016 - BULLISH