GBPUSD outlook for the week of July 19-23

GBPUSD did very well last week until Friday. It reversed it’s bullishness and dropped over 150 pips from it’s Thursday high. If you look at the chart below, you will see why? GBPUSD recovered almost 100% of it’s Fibo retracement from it’s May 17th low of 1.4249 to April 26th high of 1.5495.
So, 1.5495 becomes a resistance at this point. GBPUSD need to break this level to go higher.

Next week's strategy for GBPUSD:

We will be watching that resistance level to go long, if any breakout happens. Ofcorse, we have to be careful for any false breakout. Trend is still bullish until we see it goes below 1.5235.

On economic calendar, there is a very important news for GBPUSD and that is

British GDP: released on Friday at 8:30 GMT.

After lagging behind other countries, Britain saw two quarters of growth. Last quarter’s 0.3% growth rate which was confirmed just last week, will probably be followed by a stronger growth rate in Q2. We’ve seen better numbers at the unofficial NIESR release. Note that the preliminary release, like now, is usually worse than the final outcome. A growth rate of 0.6% is expected now.

Next week will be very interesting to watch GBPUSD for any clue of reversal.

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GBPUSD Daily Chart