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Hugo in HTO Trading,

GBPUSD: Losing its bullish momentum

Since the beginning of the year the currency gained almost 6.0% but last week fell almost 0.4% and the currency pair made a phase change, shifting from a bullish to a warning phase.

Last week the GBPUSD initially tried to rally but found enough selling pressure to erase all of its gains and closed near the low of the week, however the currency pair managed to close within the previous week range, which suggests being slightly on the bearish side of neutral.

Stochastic is showing a strong bearish momentum and crossed below the 50 mid line.

Expecting a downward move to a weekly support at 1.2791 on a bounce from the higher end of the weekly support at 1.3277 (scenario 1) however a break below the previous week low at 1.3039 may set the currency pair in a downward move to the weekly support at 1.2791 (scenario 2).