Weekly Technical Outlook: GBP/USD; Market Forecasts for July 24th – July 28th

• Resistance level 1.3104
• Pivot Level 1.3030
• Support Level 1.2917, 1.2814, and 1.2718

Technical Analysis

Daily bias in GBP/USD remains bearish with the 1.3104 resistances intact. A deeper decline is still expected for GBP/USD pair as long as resistances hold the area. The price action stays below resistances so far at this point and the week closed below the levels. Such decline is viewed as a correction. Thus, we’d expect the resistance to hold the area.

The pair remains bearish this week indicating that a bearish reversal on the pair has taken place. The outlook in turn continues with the downside bias with the price action signaling a two bar reversal bearish movement. The rejection at the resistance area closed below the trend line and the stochastic oscillator is currently at 65.0 levels.

The pair closed below the rejection of trend line, and there is a clear indication of trend reversal shifting the momentum. Current development suggests that a medium term downside is expected entailing a further low, and the focus shall be at 1.2917. A break here should make lower lows with 1.2814 levels.

Economic

• Existing Home Sales, Inflation Report Hearings, Gross Domestic Product
• S&P/Case-Shiller Home Price Indices, Housing Price Index, New Home Sales,
• Fed Interest Rate Decision, Initial Jobless Claims, Goods Trade Balance
• Durable Goods Orders, Gross Domestic Product Annualized

Area of Interest

• Strong resistance at 1.3104 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 65.0 levels indicating shift in momentum.
• At Flip Area on Daily time frame resistance levels.

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