Weekly Technical Outlook: GBP/USD; Market Forecasts for July 31st – August 4th

• Resistance level 1.3230, 1.3368, 1.3481
• Pivot Level 1.3095
• Support Level 1.2923

Technical Analysis

The GBP/USD pair closed the weekend trading above 1.2923 levels, getting good support base that reinforces the expectations of continuing the bullish bias and providing signals for the price recovery in the upcoming days. Supported by stochastic positivity that appears clearly on the daily time frame and rising above 84.0 levels, the pair remains bullish for the moment. The pair is trading on rebound after testing barriers, and that makes the trading settle now at the support area that appears in the chart. Some consolidations would be seen with bullish momentum and a further rise is expected from current levels on the new found support area. The beginning of the new trend and the first main target are located at 1.3230, pointing that breaking 1.3368 level and holding above it will push the price to resume its bullish momentum. The next target is located at 1.3481 level.

Economic

• Mortgage Approvals, Consumer Credit, Inflation Report Hearings
• Markit Manufacturing, BoE Asset Purchase Facility, BoE Interest Rate Decision
• Chicago Purchasing Managers’ Index, Pending Home Sales, Personal Consumption Expenditures
• ISM Manufacturing PMI, ADP Employment Change, Initial Jobless Claims
• ISM Non-Manufacturing PMI, Unemployment Rate, Nonfarm Payrolls

Area of Interest

• Strong support at 1.2923 areas and closed above rebound of trend line.
• Bullish momentum above the support area with two bar reversal.
• Price action closed above rebound of trend line and oscillator rising above 84.0 levels indicating shift in momentum.
• At Flip Area on Daily time frame support levels.