GBPUSD Weekly Technical Outlook
The GBPUSD is Currently in a sideways mode. On the time frame, though recent order flow context favours bulls, there is nevertheless some bearish pressure. Presently, the 1.23030/1.25500 area (blue) is the market working zone. Inside the zone market operation printed a relatively large bullish candlestick that neutralized the bearish movement of 3 weeks past.
At the daily time frame, a rising trendline (magenta) traceable to March 20 has been broken down by price action. Presently, bulls are effecting a clear retest of this trendline but they will have to compete with the neighboring horizontal resistance around 1.25500. Any successful retest of this rising trendline can see a bullish vision to target the 1.26700 horizontal resistance area (red). However a successful bearish intervention may see a retest of this 1.23030 base of the horizontal station (blue) found on the weekly time frame prior to any vision to expose the 1.21700 support zone.
Since July 1, the candlestick prints on the H4 time frame -- using more and bigger bullish candlesticks than bearish ones -- are in favour of bulls. However, price action is coming the S/R amount around 1.25500 and we can observe a weakening of this bullish influence. This might be a consequence of the bank holiday in the USA last Friday. We ought to await how the market handles the 1.25500 place in the first part of the week.
I might be incorrect. Trade secure and prosper.
KP