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GBPUSD enjoyed a positive week after a bullish hammer candlestick pattern week. Hammer patterns usually are signs of trend change and since the following week was positive, the chances for a continued move higher are now increased.
GBPUSD has support at the horizontal red line at 1.3676. If price breaks below last week's low at 1.3735 then we will have our fist sign of weakness. Given the current formation we are bullish as long as price is above 1.3735. A weekly close above 1.3980 would be a bullish sign and a sign that bulls remain in control of the trend. The horizontal support red line if broken will also activate a head and shoulders bearish pattern.
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