The GBPUSD bulls have managed to successfully defend the big psychological number and we posted a weekly close above the big psychological number 1.3500. The weekly close above 1.3500 doesn’t discount the possibility of another short lived dip below 1.3500 before the bulls can have another chance to take control of this market. The stochastic indicator is in an oversold condition for quite some time, and sooner rather than later it needs to reset which can provide the momentum to finally break to the upside. The first level of interest on the upside is the former swing low 1.3712. But, on an intraday level, we can expect to encounter some kind of resistance at 1.3652. The upcoming week will also bring one of the most anticipated rate decisions coming from the BOE. The market consensus still sees another interest rate hike from 0.5% up to 0.75%. The probability that the BOE will raise rates has indeed dropped from 90% to 20% and now some Wall Street economists even predict a slash in the 2018 growth outlook which has fueled the GBP/USD bearish momentum. Nevertheless, a surprise hike will have a very strong bullish impact under this circumstance. Previous GBPUSD Weekly Forex Forecast

GBPUSD Weekly Forex Forecast - 7th to 11th May 2018