Since the beginning of the year the currency gained almost 5.5% however last week fell more than 0.2% but the currency pair continues in its bullish phase since late-April. Last week the GBPUSD fell with a narrow range and spread plus closed in the middle of the weekly range, in addition the currency pair managed to close below the previous week low, which suggests a bearish momentum. Stochastic is setting lower highs while price is making higher highs, signs of a potential bearish divergence. The currency pair is trading above the 10-week moving average that may provide some dynamic support however once it clears to the down side the roll will reverse and becomes a dynamic resistance. Expecting a downward move to a Fibonacci retracement at 1.2778 (scenario 1) or even down to another Fibonacci retracement at 1.2627 (scenario 2) on a break below the previous week low at 1.2939.