The GBPUSD currency pair is hovering around a support line that was established three weeks ago, having decreased for the past five consecutive days. According to the opinion of @nehcap, it is anticipated that there will be only a minimal decrease in value.
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- GBP/USD flirts with three-week-old support line after declining in the last five consecutive day.
The pair currently trades last at 1.28708.
The previous day high was 1.3045 while the previous day low was 1.2868. The daily 38.2% Fib levels comes at 1.2935, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.2977, expected to provide resistance.
GBP/USD licks its wounds around 1.2870 amid Friday’s sluggish start to the Asian session, after declining in the last five consecutive days to refresh a two-week low. In doing so, the Cable pair portrays the typical pre-data consolidation as the market awaits the UK Retail Sales for June.
US Dollar Index (DXY) cheered upbeat US data and a rebound in the yields to jump the most in two months and exerted downside pressure on the Pound Sterling price the previous day. That said, US Initial Jobless Claims dropped to 228K for the week ended on July 14, the lowest since May, versus 237K prior and 242K market forecasts but the Continuing Jobless Claims rose to 1.754M for the said period compared to market forecasts of reprinting 1.729M figures. Additionally, the Philadelphia Fed Manufacturing Survey gauge improved to -13.5 for July from -13.7 prior, versus -10 expected while Existing Home Sales slumped -3.3% MoM in June compared to 0.2% prior gain.
Earlier in the week, US Building Permits and Housing Stars also reported downbeat figures for June whereas the Retail Sales growth eased despite posting upbeat details of Retail Sales Control Group for June. Despite the recently upbeat US employment clues, the US statistics haven’t been impressive to support the Fed in announcing more rate hikes past July in the next week, which in turn can challenge the US Dollar bulls. The same, if backed by upbeat UK Retail Sales, expected 0.2% versus 0.3% prior, may help the GBP/USD to extend the latest corrective bounce.
It should be noted that the recently released downbeat UK GfK Consumer Confidence for July, -30.0 from -24.0, prod the GBP/USD rebound. Furthermore, chatters that the UK PM Rishi Sunak is up for holding general elections in November 2024 also challenge the Cable pair’s corrective bounce.
Additionally, the looming fears about the UK’s economic slowdown seem to keep the GBP/USD buyers hopeful ahead of the key British data contributing majorly to the Gross Domestic Product (GDP).
Technically, the strongest bearish MACD signals in 12 days join the steady RSI (14) line to suggest further declines of the GBP/USD pair, especially when it reverses from the multi-month top marked in the last week.
However, a three-week-old ascending support line and the 21-SMA can challenge the Cable pair sellers around 1.2850-40.
Following that, a convergence of the 50-SMA and an upward-sloping trend line from March, close to 1.2660-55 at the latest, will be crucial to break for the Pound Sterling bears for conviction.
On the flip side, GBP/USD recovery remains elusive unless the quote remains below the one-week-old descending resistance line, near 1.2990 by the press time. Also important to watch will be the pair’s ability to cross the 1.3000, as well as the latest peak surrounding 1.3145.
In a case where the Cable pair remains firmer past 1.3145, also cross the 1.3150 round figure backed by upbeat UK Retail Sales data for June, the buyers can aim for a March 2022 high of near 1.3300.
Trend: Limited downside expected
Technical Levels: Supports and Resistances
GBPUSD currently trading at 1.2872 at the time of writing. Pair opened at 1.294 and is trading with a change of -0.53% % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 1.2872 |
| 1 | Today Daily Change | -0.0068 |
| 2 | Today Daily Change % | -0.53% |
| 3 | Today daily open | 1.294 |
The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 1.2831, 50 SMA 1.2643, 100 SMA @ 1.249 and 200 SMA @ 1.223.
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 1.2831 |
| 1 | Daily SMA50 | 1.2643 |
| 2 | Daily SMA100 | 1.2490 |
| 3 | Daily SMA200 | 1.2230 |
The previous day high was 1.3045 while the previous day low was 1.2868. The daily 38.2% Fib levels comes at 1.2935, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.2977, expected to provide resistance.
Note the levels of interest below:
- Pivot support is noted at 1.2857, 1.2774, 1.268
- Pivot resistance is noted at 1.3034, 1.3127, 1.321
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 1.3045 |
| Previous Daily Low | 1.2868 |
| Previous Weekly High | 1.3142 |
| Previous Weekly Low | 1.2750 |
| Previous Monthly High | 1.2848 |
| Previous Monthly Low | 1.2369 |
| Daily Fibonacci 38.2% | 1.2935 |
| Daily Fibonacci 61.8% | 1.2977 |
| Daily Pivot Point S1 | 1.2857 |
| Daily Pivot Point S2 | 1.2774 |
| Daily Pivot Point S3 | 1.2680 |
| Daily Pivot Point R1 | 1.3034 |
| Daily Pivot Point R2 | 1.3127 |
| Daily Pivot Point R3 | 1.3210 |
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