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GBPUSD: At a key pivotal point

Since the beginning of the year, the currency pair gained of almost 3.9% also last week rallied nearly 1.5% and remains in a bullish phase since late November 2017.

Last week the GBPUSD rallied with a narrow range and closed near the high of the week, in addition the currency pair managed to close within the previous week range, which suggests being slightly on the bullish side of neutral.

The stochastic is showing a strong bearish momentum although is above the 50 mid line.

The upside seems to be capped by the 200-week moving average, a weekly resistance and the newly 2018 high although the currency pair has been in an upward trend since mid-April 2017. However, we should brace a potential pullback toward the upward trend line that is acting as a strong support.

Expecting an upward move to 2018 high at 1.4345 on a break above the previous week high at 1.4145 (scenario 1) however a break below the previous week low at 1.3795 may start the spark in currency pair into a downward move to 1.3394 (scenario 2).