Image Source: PixabayThe GBP/USD currency pair turned in a solid amount of gains last week. After falling to lows on Monday, the currency pair began to incrementally climb higher throughout the rest of the trading period. The GBP/USD pair closed near the 1.24790 mark before going into the weekend. With the Forex market having survived an intriguing set of circumstances last week, this coming week will prove to be another interesting spectacle for Forex speculators.Last week began with the absence of US financial institutions, but the week did see President Trump resume power in the US White House.Poor behavioral sentiment, which shuffled the GBP/USD pair lower since early December, may have run into the opinion that the currency pair had finally reached oversold territory on Jan. 13, when the 1.21000 level was momentarily punctured lower. The rise higher in the GBP/USD pair since then has not been a steady one, but gains have certainly been produced, as this past Friday’s intriguing price action demonstrated.

Resistance Proved Vulnerable Near the 1.24000 Level
On Friday, the GBP/USD duo raced through the 1.24000 level and demonstrated the potential to reach a higher figure. In fact, the 1.25000 level was seen for a moment, but a slight reversal lower going into the weekend produced some selling.Price velocity in the GBP/USD cross has been evident, and day traders should be reminded to use solid risk management in the currency pair as a safeguard. While the GBP/USD duo is a high-tier currency pair, questions surrounding central bank policy has caused some volatility.Global central bank rhetoric and policy will be on display this coming week, and this will likely affect the GBP/USD pair. The Fed and ECB will step up to their respective podiums in the coming days. The Fed is expected to stand pat this coming Wednesday, while the European Central Bank is expected to cut its Main Refinancing Rate by another 0.25.However, if this plays out as anticipated, the driving force in Forex this coming week may come from President Trump, who has begun to share his opinion on interest rates. He is in favor of the US Fed cutting rates, which puts him in opposition to the Fed’s current stance, and this could cause a potential storm near-term.

UK Economic Data and the Bank of England
While the UK has remained mired in lackluster economic data, this coming week will only offer housing statistics for GBP/USD pair traders to consider. However, BoE Governor Bailey is scheduled to testify in front of the Treasury Select Committee on Wednesday in London. The GBP/USD pair will potentially react to his shared viewpoints.In summary:

GBP/USD Weekly Outlook: Speculative Price Range is 1.24050 to 1.25800
The weakness in the GBP/USD currency pair, which has been on full display since the second week of December, has kept the currency cross under a cloud. The upwards momentum generated last week sparked sentiment that the currency pair appeared to be oversold.The question now is how behavioral sentiment will shift through this coming week and the next. The global central banks are in an awkward position. The BoE is expected to cut interest rates, while the Fed is expected to remain stuck in place. Outlooks from these institutions will be vital.Traders need to be cautious. While the GBP/USD pair, from a historical perspective, may look to be oversold and the 1.25000 and 1.26000 range may appear enticing, these prices may prove to be challenging over the near-term.Financial institutions have largely positioned for the Fed and ECB this coming week, as well as the BoE in early February. The question is if their outlooks will prove correct. Until then, day traders should expect nervous conditions to persist in the coming days. Looking for upside may be appealing in the GBP/USD pair, but it should be done with a full arsenal of strict strategies and tools, including stop losses. More By This Author:WTI Crude Oil Weekly Forecast: Known Range With More Holiday Trading Coming
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