GBP/USD: larger drop favored
July 20, 2023 1:24 pmVideo
Latest News
- Analysis of GBP/USD on April 26th. The pound trades on Friday without changes April 26, 2024
- USD/JPY: Simple trading tips for novice traders on April 26th (US session) April 26, 2024
- GBP/USD: Simple trading tips for novice traders on April 26th (US session) April 26, 2024
- EUR/USD: Simple trading tips for novice traders on April 26th (US session) April 26, 2024
- GBP/USD: trading plan for the US session on April 26th (analysis of morning deals). The pound attempted, but it didn’t go April 26, 2024
- EUR/USD: trading plan for the US session on April 26th (analysis of morning deals). The euro continues to rise April 26, 2024
- Trading Signals for GOLD (XAU/USD) for April 26-29, 2024: buy above $2,324 and sell below $2,352 (21 SMA – 6/8 Murray) April 26, 2024
- Technical Analysis – AUDUSD set to complete best week of the year April 26, 2024
- Will Apple finally drop its AI hint? – Stock Markets April 26, 2024
- Bitcoin slips as markets pare back Fed rate cuts – Crypto News April 26, 2024
- EUR/USD. April 26th. Bulls continue to advance after the GDP report April 26, 2024
- Can Chinese PMIs solidify the economy’s recovery prospects? – Preview April 26, 2024
- Weekly Forex Outlook: 26/04/2024 – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too April 26, 2024
- XM’s Lombok Collaboration: Brightening Futures April 26, 2024
- Week Ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too April 26, 2024
- Market Comment – Yen keeps sinking after Bank of Japan decision April 26, 2024
- Fed faces dilemma amid sticky inflation and slowing economy – Preview April 26, 2024
- USD/JPY: trading tips for beginners for European session on April 26 April 26, 2024
- GBP/USD: trading tips for beginners for European session on April 26 April 26, 2024
- EUR/USD: trading tips for beginners for European session on April 26 April 26, 2024
The GBP/USD pair is trading in the red at 1.2874 at the time of writing and it seems determined to extend its sell-off. It has ended its temporary rebound and now it could hit new lows. Dollar Index’s current rally forced the USD to take the lead versus its rivals.
You already know from yesterday’s analysis that the greenback rallied, even though the US Housing Starts and Building Permits came in worse than expected. Today, the US Unemployment Claims indicator could be reported at 239K versus 237K in the previous week. Furthermore, the Philly Fed Manufacturing Index is expected at -10.0 points, Existing Home Sales could drop to 4.21M, while CB Leading Index may report a 0.6% drop. Positive US economic figures should boost the USD.
GBP/USD 1.2867 Key Support!
As you can see on the H1 chart, the rate failed to approach and reach the weekly pivot point of 1.2990 signaling strong downside pressure. Temporary rebounds are natural after its massive drop.
Now, it has dropped below the lower median line (lml) which represents dynamic support and it challenges the 1.2867 former low.
GBP/USD Outlook!
Dropping and closing below 1.2867 and under the S1 (1.2850) activates more declines. This scenario is seen as a selling opportunity. The warning line (wl1) represents a potential target.
The material has been provided by InstaForex Company – www.instaforex.com
Related Posts: