Daily GBP/USD technical outlook

Last Update At 08 Jul 2022 01:06GMT.

Trend daily chart

Down

Daily indicators

Bullish convergences.

21 HR EMA

1.2004

55 HR EMA

1.1989

Trend hourly chart

Sideways

Hourly indicators

Rising

13 HR RSI

69

14 HR DMI

+ve

Daily analysis

Initial recovery b4 down.

Resistance

1.2125 - Tue's high.
1.2098 - Mon's NY low (now res).
1.2052 - Intra-day high.

Support

1.1949 - Thur's NY low.
1.1910 - Thur's low.
1.1877 - Wed's fresh 2-year low.

GBP/USD - 1.2047.. Although cable swung sideways in Asia, price rallied on short covering in sterling following news of UK PM's resignation, price rose to 1.2024 b4 retreating to 1.1949 in NY but later hit session highs of 1.2030.

On the bigger picture, despite cable's brief break of 2016 post-Brexit low of 1.1491 to a near 35-year trough of 1.1412 in mid-Mar 2020 on safe-haven usd's demand following free fall in global stocks, price rallied to 1.3686 on the last trading day of 2020 following a last-minute EU-UK trade deal, then to a near 34-month 1.4241 peak in Feb suggests a major low is made. Having said that, cable's erratic fall to 1.2162 in Dec 2021 n then continued decline this year to a 2-year bottom at 1.1934 in mid-Jun n Tue's break there suggests correction fm 1.1412 is over n may head to 1.1800, 'bullish convergences' on daily indicators should keep price abv 1.1682. Only abv 1.2189 risks stronger gain twd 1.2332.

Today, as Wed's low at 1.1877 was also accompanied with bullish convergences on hourly indicators, Thur's rally to 1.2024 in Europe n then intra-day break of 1.2030 would bring range trading, o/bot readings on hourly oscillators would cap price below 1.2085. Below 1.1949 (NY low) would head back twd 1.1910.

Chart

Trendsetter does not warrant or guarantee the accuracy, timeliness or completeness to its service or information contained therein. Trendsetter does not give, whatsoever, warranties, expressed or implied, to the results to be obtained by using its services or information it provided. Users are trading on their own risk and Trendsetter shall not be responsible under any circumstances for the consequences of such activities. Trendsetter and its affiliates, in no event, be liable to users or any third parties for any consequential damages, however arising, including but not limited to damages caused by negligence whether such damages were foreseen or unforeseen.

Recommended Content


Recommended Content

Editors’ Picks

EUR/USD treads water just above 1.0400 post-US data

EUR/USD treads water just above 1.0400 post-US data

Another sign of the good health of the US economy came in response to firm flash US Manufacturing and Services PMIs, which in turn reinforced further the already strong performance of the US Dollar, relegating EUR/USD to the 1.0400 neighbourhood on Friday.

EUR/USD News
GBP/USD remains depressed near 1.2520 on stronger Dollar

GBP/USD remains depressed near 1.2520 on stronger Dollar

Poor results from the UK docket kept the British pound on the back foot on Thursday, hovering around the low-1.2500s in a context of generalized weakness in the risk-linked galaxy vs. another outstanding day in the Greenback.

GBP/USD News
Gold keeps the bid bias unchanged near $2,700

Gold keeps the bid bias unchanged near $2,700

Persistent safe haven demand continues to prop up the march north in Gold prices so far on Friday, hitting new two-week tops past the key $2,700 mark per troy ounce despite extra strength in the Greenback and mixed US yields.

Gold News
Geopolitics back on the radar

Geopolitics back on the radar

Rising tensions between Russia and Ukraine caused renewed unease in the markets this week. Putin signed an amendment to Russian nuclear doctrine, which allows Russia to use nuclear weapons for retaliating against strikes carried out with conventional weapons.

Read more
Eurozone PMI sounds the alarm about growth once more

Eurozone PMI sounds the alarm about growth once more

The composite PMI dropped from 50 to 48.1, once more stressing growth concerns for the eurozone. Hard data has actually come in better than expected recently – so ahead of the December meeting, the ECB has to figure out whether this is the PMI crying wolf or whether it should take this signal seriously. We think it’s the latter.

Read more
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

Majors

Cryptocurrencies

Signatures