GBPUSD  Forecast

The GBPUSD continued its bearish momentum yesterday and now testing the lower line of the bullish channel as you can see on my daily chart below. The bias is bearish in nearest term. A clear break and daily close below the bullish channel and 1.6350 support area would be a threat to the current major bullish outlook testing 1.6160 support area. Immediate resistance at 1.6450 followed by 1.6550. A clear break above 1.6550 would lead us to neutral zone in nearest term as direction would become unclear but would keep the major bullish scenario intact. Fundamental focus in on the US NFP today, which is expected around 185K, worse than the previous number around 216K. We have seen risk aversion sentiment this week, where bad US data lead the Greenback stronger. If we do have a bad US NFP number today and risk aversion sentiment remains driving the market, the bullish channel may not hold and might trigger further bearish correction.

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