Wednesday, July 10, 2019

GBP/USD - 10 July 2019

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Fundamental Highlights

The British Pound broke below the major psychological support, 1.25, as the sentiment around the Sterling is getting worse day by day amid increased odds of a BOE rate cut, after the recent streak of weak UK PMI numbers that triggered recession fears. The bearish pressure could accelerate today as UK releases multiple macro data including, Industrial Production, GDP and Trade Balance. In political news, Northern Ireland Bill failed to block a no-deal Brexit which led the Cable to fall to fresh six-month lows. The British currency remains in the dark amid looming Brexit uncertainty, as front-runner Boris Johnson promising to leave the EU on October 31, with-or-without a deal.

Technical Analysis

The Cable broke below major support levels yesterday, 1.25 and 1.2480, opening doors for a much further weakness on the horizon. The Sterling found temporary support around 1.2440, but the bulls need to clear past at least 1.2480 to halt this recent bearish momentum. If the sellers manage to break 1.2440, then 1.24 will be exposed.

Support: 1.2440 / 1.24
Resistance: 1.2480 / 1.2506

Chart (H4)
GBPUSD