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We’ll start the weekend forecast with a pair that was mentioned late last week in GBPUSD. I feel this pair has the most potential from a technical perspective going into the new week.
But first I do want to mention that a lot of markets appear to be consolidating amid the constant speculation surrounding the drama in Greece. For that reason, be extra cautious when deciding which pairs to trade, especially for any Euro pairs.
We also have a U.S. and Canadian holiday on Monday, so expect lower than usual levels of liquidity.
Now for the GBPUSD setup. The pair made a major technical break last week, closing above channel resistance. This channel had been in place since September of last year, so it was certainly a significant technical pattern.
GBPUSD daily chart:
If you remember last week’s commentary, I mentioned to watch for a buying opportunity on a move back to 1.5340 and 1.5370. I still like this area going into the new week, and in fact we have a nice confluent area to watch for a buying opportunity on a pullback to new support.
Summary: Watch for a buying opportunity on a move back to the area highlighted in the chart below. Key resistance comes in at 1.5584 and 1.5803.