GBPUSD has fallen for two consecutive weeks. The fall was rather drastic on Friday due to the weak GDP data from UK.
We can see that this week’s action will be crucial for the direction of the pair. It could soon test the uptrend line that we have been observing for quite some time now. If the trendline is broken to the downside it could send the pair much lower. This could happen if the fundamentals from UK disappoints again in the coming week, and/or due to the strength of the USD due to strong employment data from USA.
Trading Preference
The price action around the trendline will be important to trade this pair. If the trendline is broken on the daily timeframe, we can go short on the pair. Paying attention to fundamentals also could make it easier to trade this pair. If there is a strong bullish candle on the daily timeframe due to strong fundamentals, bouncing the pair off the support from the trendline, it could be a good opportunity go long.
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