Bottom line: GBPUSD long term structure remains bullish against 1.1414 lows. Over the next few weeks, the currency might remain in control of bears as they prepare to correct lower towards 1.1900/1.2000 levels.
Fundamental Outlook:
EURUSD had managed to pullback from Friday lows of 1.1250 at close. It is trading comfortably above 1.1320 as we prepare to publish the update. Risk sentiment managed to recover despite the rising COVID-19 cases in the US and Asian countries. EURUSD faces a major event risk on July 17, as European Union meets to decide on another EURO 750 billion fiscal stimulus.
GBPUSD managed to gain over the past few trading sessions and peaked 1.2666 today. A broad US Dollar weakness over the past sessions has supported the rise from 1.2250 through 1.2660. Major event risks over the week are Brexit developments, UK GDP figures to be out tomorrow and Unemployment rate the day after.
FTSE had registered 6000 levels last week before pulling back. The indice is trading close to 6200 levels as we prepare to publish today’s update and is soon expected to come under further downside pressure. It is a common phenomenon for risk appetite to rise with rising fundamental concerns, but it might be sending a contrarian signal (risk aversion might be back).
Technical Analysis:
GBPUSD seems to have carved a lower top around 1.2666 levels today and bears would be ready to take control back from here. The counter trend rally seems to be complete for now and the currency might reverse lower towards 1.2000 levels.
GBPUSD had earlier dropped from 1.2800 through 1.2250 levels. The counter trend rally has reached just over the fibonacci 0.618 retracement of the above drop, seen towards 1.2600 respectively. Bears might be poised to resume lower from here.
Traders might be preparing to initiate fresh short positions around current price action (1.2620/25), with protective stops above 1.2800 respectively. The projected downside targets remain close to 1.2000 mark.
Prepared by
Harsh Japee, Technical Analyst.
MyFxtops 邁投 (www.myfxtops.com) -Reliable Forex Copy Trade community, follow the master for free to trade!
Disclaimer: This article is reproduced from the Internet. If there is any infringement, please contact us to delete it immediately. In addition: This article only represents the personal opinion of the author and has nothing to do with Mato Finance The originality and the text and content stated in this article have not been confirmed by this site. The authenticity, completeness and timeliness of this article and all or part of the content and text are not guaranteed or promised. Please refer to it for reference only Verify the content yourself.
Copyright belongs to the author.
For commercial reprints, please contact the author for authorization. For non-commercial reprints, please indicate the source.
MyFxtops迈投(www.myfxtops.com)-靠谱的外汇跟单社区，免费跟随高手做交易！
免责声明：本文系转载自网络，如有侵犯，请联系我们立即删除，另：本文仅代表作者个人观点，与迈投财经无关。其原创性以及文中陈述文字和内容未经本站证实，对本文以及其中全部或者部分内容、文字的真实性、完整性、及时性本站不作任何保证或承诺，请读者仅作参考，并请自行核实相关内容。
著作权归作者所有。
商业转载请联系作者获得授权，非商业转载请注明出处。
