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Hugo in HTO Trading,

GBPUSD: Consolidating at year low

Since the start of the year the currency lost more than 3.5% however last week rose more than 0.5% and is getting ready for a potential phase change, from a bearish to a recovery phase.

Last week the GBPUSD initially rose but found enough selling pressure to give back to the market some of its gains and closed in the middle of the weekly range, in addition closed within the previous week range, suggesting lack of momentum and indecision by the investors.

The Stochastic is showing bullish momentum although is still below the 50 mid line.

Expecting an upward move to a key level at 1.4668 on a break above the previous week high at 1.4347 (scenario 1) and a bounce off a key level at 1.4085 could push the currency up to another key level at 1.4668 (scenario 2).