Weekly Technical Outlook: GBP/USD ; Market Forecasts for July 10th – July 14th

• Resistance level 1.3026
• Pivot Level 1.2901
• Support Level 1.2718, 1.2663, and 1.2605

Technical Analysis

Daily bias in GBP/USD remains bearish with 1.3026 resistances intact. A deeper decline is still expected for the GBP/USD pair as long as resistances hold the area. The price action stays below resistances so far, and the pair has closed the week below the levels, hence such decline is viewed as a correction. Thus, we’d expect the resistance to hold the area, and the pair remains bearish this week, indicating a bearish reversal on the pair has taken place.

The pair continues with the downside bias and the price action signals a bearish movement with a two bar reversal. There is a rejection at the resistance area that closed below the trend line, and the stochastic oscillator is currently at 77.0 levels.

The pair closed below the rejection of trend line, and there is a clear indication of trend reversal shifting the momentum. The current development suggests that a further low is expected as a medium term downside, and focus shall be at 1.2718. A break here should make lower lows with 1.2663 levels.

Economic

• BRC Like-For-Like Retail Sales, Inflation Report Hearings, ILO Unemployment Rate
• RICS Housing Price Balance, Claimant Count Change
• Labor Market Conditions Index,
• FOMC Member Brainard Speech, Fed’s Yellen testifies, Retail Sales
• Consumer Price Index, Michigan Consumer Sentiment Index

Area of Interest

• Strong resistance at 1.3206 area and closed below resistance levels.
• Bearish reversal strongly closing below the rejection of trend line with two bar signal.
• Price action closed below trend line and oscillator below 77.0 levels indicating shift in momentum.
• At Flip Area on Daily time frame resistance levels.

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