During the previous week, the Cable decided to continue the bearish correction inside the Rising Wedge pattern on the Daily graph. At the same time, taking into account the pattern itself, the downtrend may soon come to the end, as it was suggested by the vast majority of Dukascopy Community members, who were largely undecided on the future perspectives of the pair. Last week and similar to the EUR/USD currency pair the Cable was influenced by the strong U.S. GDP data, which pushed the pair lower. Weaker-than-expected manufacturing data in Britain also added fuel to the fire. As a result, by the end of the week, which ended on August 1, the pair came through the weekly PP at 1.6879 and approached the daily S1 at 1.6830, which has afterwards been successfully breached, but the pair was able to bounce back to trade below the daily R1 in the beginning of this week.
In the next five days, the Cable may be strongly influenced by upcoming manufacturing production data in the U.K., which can send the pair higher, possibly above the weekly R1 at 1.6945. Technical analysis also suggests the bullish action to take place, keeping in mind the end of the general bearish movement. The idea is supported by the majority of the participants from Dukascopy Community, as more than 53% of traders are waiting the pair to rebound, possibly to the previously-mentioned resistance level. As khalidamassi suggests, "Although of sharp losses of GBP/USD last week, the pair still supported fundamentally and may be near to quick recovery if UK news is supported. ".