GBPUSD Forecast:

The GBPUSD had indecisive movement yesterday. The pair attempted to push lower, bottomed at 1.6374 but whipsawed to the upside, closed higher at 1.6536. On h4 chart below we can see that the price is now testing the upper line of the bearish channel and 38.2% Fibo retracement area (of 1.7042 – 1.6274) around 1.6570. A violation to the upside of the bearish channel and consistent move above 1.6570 should trigger further bullish momentum re-testing 1.6660 area (50% Fibo retracement of 1.7042 – 1.6274). As long as the pair stay below 1.6660 I still prefer a bearish scenario. UK economy outlook remains pessimistic and BoE decision to expand Quantitative Easing program can’t be too good for the Sterling. So any upside momentum should be very limited at this phase. I prefer to stay out for now. Immediate support is seen at 1.6470. Break below that area should trigger further bearish momentum back towards 1.6350