GBPUSD (1.3016): The British pound wasn’t able to capitalize much on the US dollar weakness. As a result, the GBPUSD fell below 1.3000 last week after briefly rising to levels above 1.3100. Price action suggests an inside bar that was formed on Friday. A breakout from this level will dictate the next leg.
Resistance is seen at 1.3025 with the daily chart showing a consolidation into a rising wedge pattern. A reversal near 1.3025 region could potentially support the bearish case for GBPUSD to decline back to 1.2818 – 1.2800 levels. In the event that GBPUSD manages to break past 1.3025, then establishing support at or above this level could indicate further bullish gains in the cable.
