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Hugo in HTO Trading,

GBPUSD: Trying to make a double bottom

Since the start of the year the currency lost more than 12.0% and last week was no different with a loss of more than 1.0% also is in a bearish phase since late June.

Last week the GBPUSD fell with a narrow range and closed near the low of the week, in addition managed to close below the previous week low, which suggests a strong bearish momentum.

The Stochastic is showing an oversold market however is still displaying bearish momentum.

Expecting an upward move to a weekly support at 1.3277 on a bounce of the 2016 low at 1.2791 (scenario 1) and a rejection of the weekly support at 1.3277 may push again the currency down to the 2016 low at 1.2791 (scenario 2).