empty
 
 

06.07.202207:17 Forex Analysis & Reviews: Trading plan for GBPUSD on July 06, 2022

Exchange Rates 06.07.2022 analysis

Technical outlook:

GBPUSD dropped to fresh swing lows at around 1.1900 on Tuesday, just 30-35 pips below the previous low. This could be a test of potential support at around 1.1900 before prices reverse higher again. The currency pair is carving shallow lows followed by sharp pullback rallies from 1.2150, which indicates that a potential bottom is close.

GBPUSD has carved a larger-degree corrective wave since January 2021 highs registered at 1.4250. Unlike the euro, which has slipped to fresh swing lows, the sterling has dropped just below the Fibonacci 0.618 retracement of the previous larger-degree upswing (1.1400- 1.4250). A bullish reversal from current levels (1.1930) remains highly probable.

GBPUSD is now facing immediate price resistance at around the 1.2300-2400 zone as marked on the daily chart here. Bulls are required to now break above 1.2400 to confirm a potential trend reversal and to assert they are back into control. Until that happens, prices will remain vulnerable to fresh swing lows.

Going forward:

GBPUSD has been carving recent lows at around 1.2150, 1.2106, and 1.1900-30 in the past few trading sessions. Importantly, each low was accompanied by a bullish divergence on the daily RSI as seen on the chart here. This could be a sign of a potential bullish reversal in the near term.

Trading plan:

Preparing for a potential bullish reversal soon.

Good luck!

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

Oscar Ton,
Analytical expert of InstaForex
© 2007-2022
Benefit from analysts’ recommendations right now
Top up trading account
Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.




  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • Ferrari from InstaForex
    Top up your account with at least $1,000
    join the contest and win Ferrari
    F8 Tributo
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and win $1,000
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS
Can't speak right now?
Ask your question in the chat.