Before last week the GBP was holding above the key 200 sma levels on the daily time frame across several GBP crosses and the picture was BULLISH with some sound economic numbers and talk of possible future rate rises. In the last week the mood seems to have seriously shifted and the GBP looks under pressure.
GBP lost ground against all its major counterparts apart from the AUD and the Weekly candle on GBP/USD was almost a perfect Maribuzo BEAR candle suggesting the BEARS have complete control of the market.
Of course anything can happen in the FX markets and sentiment can change very quickly but should the BULLS not step in to prop up the GBP next week , we could see more GBP weakness.
Key C.P.I. numbers on Tuesday and Average Earnings on Wednesday may set the mood but below 1.2330 on GBP/USD opens the door for a deeper move south and other GBP pairs are likely to follow.
Above 1.2510 changes the mood to BULLISH and a break and hold above 1.2558 would be a significant change in trend as the picture would turn very BULLISH but this seems unlikely.