The GBPUSD sell-off continued to extend lower, reaching extreme oversold conditions in several time frames already. This can be a sign that sooner rather than later a bounce can be seen. The inability to break and post a weekly close below the big psychological number 1.3000 can be indicative of sellers running out of power. However, a break below 1.3000 can open the door for a retest of support level1.2900. The stochastic indicator is already in oversold conditions and showing a crossover. On the upside the first level of resistance only comes at 1.3150 followed by daily resistance 1.3350. There is few risk events scheduled on the UK economic calendar. On Tuesday we have the Manufacturing Production figures which are expected to come flat. Secondly, the Trade Balance figures will be published the same day. On Wednesday, we have the FOMC minutes which will give investors one last look into Fed’s interest rate policy and how likely is the Fed to hike rates in December. Previous GBPUSD Weekly Forex Forecast

GBPUSD Weekly Forex Forecast - 9th to 13th Oct 2017