GBP/USD Daily Price Forecast – GBP/USD Breaches 1.32 Handle on Weaker US Greenback

The GBP/USD is trading into the 1.3200 major levels after catching a mild boost in the late Wednesday session, with risk assets driving higher and the US Dollar facing a mild sell-off in the broader markets following positive trade talks between the US’ President Trump and the European Union’s Jean-Claude Juncker. Wednesday was a data-light day for the GBP, with only the CBI Distributive Trades Survey releasing for July, though the indicator did manage to beat expectations, coming in at 20% versus the forecast 15%, but still below the previous reading of 32%. Thursday is also devoid of any meaningful data for the UK, but some volatility may be seen when the US Durable Goods Orders for June drop at 12:30 GMT, which are expected to improve from -0.6% to 3.0%. The British pound remained flat for majority of the Wednesday session and in the North American session, the pair was trading at 1.3141, down 0.02% on the day before gaining upper hand on US-EU trade talk related headlines.

GBPUSD Buoyant

Trade headlines were back on the frontline once again after the US and the EU made a joint statement late on Wednesday, with both sides appearing to be willing to avert a trade war, though specific details remain light and specific plans of action are yet to materialize, but markets are taking the opportunity to swing to into the risk-on camp, giving GBP buyers a much-needed breather. Extending overnight losses, the dollar index which measures dollar against a basket of six major currencies was down 0.06% at 94.174 after brushing 94.087, it’s lowest since July 10. However the dollar’s retreat was limited as long-term Treasury yields climbed after the U.S.-E.U. trade news improved investor risk appetites and lessened demand for government bonds.

GBP/USD bullish bias remains in place as GBP/USD is trading at weekly highs and above all its main simple moving averages (50, 100 and 200 SMA). Wednesday’s bump higher gives the GBP/USD a chance to start marking in bullish gains, the technical picture shows an increasing upward potential, despite the pair holding within familiar levels in the 4 hours chart. The RSI momentum indicator seems to be picking up, currently at 60 which also indicate continued uptrend movement in near future. Expected support and resistance for the pair are at 1.3135, 1.3090, 1.3045 and 1.3210, 1.3240, 1.3280 respectively.