Thursday, July 4, 2019

GBP/USD - 04 July 2019

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Fundamental Highlights

The British Pound continued to weaken during yesterday’s session after the Services PMI data unexpectedly missed the forecast, denting the market sentiment even further after a series of weak data throughout the week. At the political front, the UK PM candidates, namely Boris Johnson and Jeremy Hunt, continue to claim to be superior over the other by trying to create an image that can offer fewer harms during the no-deal Brexit. However, the front-runner Boris Johnson remains favored as he promises to cut short the government expenses if he becomes the next PM. Today, we expect a low liquidity day in the market as the US is closed for the 4th of July Independence day holiday.

Technical Analysis

The Sterling continued to slide yesterday until it found support at 1.2560. The pressure remains on the bulls as the bears will likely attempt to break below 1.2560 in today’s session. If successful, then their next target will be 1.2508. However, the bulls will need to break above 1.26 to regain short-term control and push price higher towards 1.2660.

Support: 1.2560 / 1.2507
Resistance: 1.26 / 1.2660

Chart (H4)