GBPUSD May 05 to May 09 Outlook

Recap
Cable breached Y+1 early in the week and holding Y-0 since was ultimate give away that it wanted to go higher. Rally later in the week sent cable to Y+3, my upside target. Stalled from there since. Closed the week above Y+1 and midpoint.

Outlook
As mentioned last week, the upside move could be quite counter-intuitive but the chart told us that was the likely outcome. This overall weaknesses with US dollar against the European currencies could be mainly a by-product of repatriation of money from Russia back to these other European countries. Until the money flow subside, it will continue to affect them.

The test of Y+3 failed to produce a strong short squeeze indicates that the rally was not driven by trapped shorts. A retest of B+1 is likely as long as Y-0 to Y+1 acting as support.

We need B-0 acting as resistance sending Cable below Y-1 to confirm the end of this up trend.