GBPUSD weakened significantly last week after the Bank of England’s statement on interest rates and monetary policy. As a result, the pair falled from resistance 1.3330 to the support area around 1.3030, which in addition coincides with the trend line extending from April low.
As you can see on the daily chart below, GBPUSD rebounds from support area on Friday and continues during yesterday’s session.
The price action we have recently seen points to a movement which lower limit is the support area, and the upper band is at around 300 pips higher at 1.3330.
If buyers are able to continue growth after a rebound from support, it is possible that in the near future we will see a next test of resistance in vicinity of 1.3330. Alternatively, in the event of a return of the bearish momentum and breaking the support confluence at 1.3030, the way to the next level of defence near 1.2800 will be opened .
