07.07.202012:44 Forex Analyse & Reviews: Technical analysis of GBP/USD for July 07, 2020

Exchange Rates 07.07.2020 analysis

Overview:

The GBP/USD pair broke resistance which turned to strong support at the level of 1.2383 last week. The level of 1.2383 coincides with 23.6% of Fibonacci, which is expected to act as major support today.

Since the trend is above the 23.6% Fibonacci level, it means the market is still in a uptrend. From this point, the GBP/USD pair is continuing in a bullish trend from the new support of 1.2383.

This is shown to us as the current price is in a bullish channel. According to the previous events, we expect that the GBP/USD pair will move between 1.2383 and 1.2595.

On the H4 chart, resistances are seen at the levels of 1.2531 and 1.2595. Also, it should ne noticed that, the level of 1.2465 is representing the daily pivot point.

Therefore, strong support will be formed at the level of 1.2456 providing a clear signal for buy deals with the targets seen at 1.2531. If the trend breaks the support at 1.2531 (first resistance).

Thereupon, it is possible that the pair will move upwards continuing the development of the bullish trend to the level 1.2595 in order to test the daily resistance 2. However, stop-loss is to be placed below the price of 1.2252.

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

Uitgevoerd door Mourad El Keddani,
Analytische expert
InstaForex Group © 2007-2020
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