The GBP came under severe pressure last week where it lost ground against all currencies save from the AUD where it gained a modest 50 pips but this has to considered quite an achievement considering the GBP fell over 200 pips against the USD and the JPY. The GBP/USD
weekly candle was particularly revealing as it was as close to a Marubozu
candle as you are likely to see suggesting the BEARS had complete control of the market from first bell to last.
Should we see continued selling of GBP next week this could indicate a significant
reversal of the GBP's recent bullish
direction and open a move to retest recent lows at 1.1987.
However, current levels do offer some support to the GBP so its not out of the question that the GBP may find buyers in this area but a failure to take out 1.24 on Monday could open the door to a major move south.