GBPUSD: Key plays that can happen next week
The prices have been consolidating creating a range bound zones between 1.29799 & 1.27732 for little over a month at this point. The 1.27732 level has been the previous points of resistance in the past, in which has now become a current support. The current trajectory is looking like it will cross this point and depending on how the daily candles close below or above this purple zone in the orange box will determine whether it'll create bullish or bearish movements for the next two weeks. The following things are possible:
1. The break and closure of 1.27732 will cause the price to dip below and try to reach 1.25765, which is the next past resistance, thus turning it into a new point of support.
2. The retest of 1.27732 can prolong the range bound movements, then we'll need to wait until it'll break or retest the new uptrend. If it breaks the uptrend, scenario #1 can still happen. If it retests, it would try to reach 1.31765 just like it has in the past, eventually then to the weekly resistance of 1.32979.
1. The break and closure of 1.27732 will cause the price to dip below and try to reach 1.25765, which is the next past resistance, thus turning it into a new point of support.
2. The retest of 1.27732 can prolong the range bound movements, then we'll need to wait until it'll break or retest the new uptrend. If it breaks the uptrend, scenario #1 can still happen. If it retests, it would try to reach 1.31765 just like it has in the past, eventually then to the weekly resistance of 1.32979.
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