Friday, July 5, 2019

GBP/USD - 05 July 2019

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Fundamental Highlights

The Sterling remained relatively unchanged since yesterday despite the UK political headlines continue. British PM candidate Boris Johnson pledged to get Brexit done at all cost and promised to reduce UK’s debt. Also, he suggested that he could maintain the lavish spending promises even if a no-deal Brexit occurs. In terms of macroeconomics, traders will closely watch the crucial US NFP numbers as it could be the most important data coming out this month before Powell’s decision in July’s FOMC. A better than expected data, will lower the odds of rate cut, and it will push the US Dollar higher which will automatically put pressure on the Pound, possibly taking it lower to test the major psychological support 1.25.

Technical Analysis

The Cable traded in the same range yesterday as the battle between the bulls and bears continues. The bulls are looking to retest 1.26 in today’s session, if they successfully break above it, it will push the Sterling higher to possibly retest 1.2660, where we can also find the 50 and the 200 day moving averages. On the other hand, if the bears break below 1.2560, then a retest of the major 1.25 support level will be a likely scenario.

Support: 1.2560 / 1.2507
Resistance: 1.26 / 1.2660

Chart (H4)
GBPUSD