GBP/USD: outlook for July 3-7

GBP/USD: outlook for July 3-7

2019-11-11 • Updated

Sterling erased its post-election losses and rose to 1.3010 in the past week after the Bank of England Governor Mark Carney said on Wednesday that they may need to raise interest rates despite a weakening economy. It was a radical U-turn from its last week’s dovish commentary, so traders reacted accordingly. The pound got some additional support after British Prime Minister Theresa May won backing for her Brexit and austerity agenda thanks to decisive votes of the small Northern Irish party.

The current price action is clearly showing the characteristics of the bullish trending phase, but we would not recommend rushing into long trades in the near term. Britain enters a period of uncertainty negotiating its exit from the EU which should hurt the GBP. So, the US dollar will probably try to recoup its losses next week. The economic data coming from the US may help if the figures come out upbeat. There will be US manufacturing PMI, unemployment claims, jobless rate, average hourly earnings and, what is more important, NFP. You should also note in your diary the release of FOMC meeting minutes on Wednesday. The British pound might also be influenced by the data flow out of the UK. Manufacturing, construction, and services PMIs will be released at the beginning of the week. Then, you should particularly be focused on Friday’s economic releases (Halifax housing price index, manufacturing production and goods trade balance).

On the technical chart, GBP/USD reached 1.3030 but failed to climb higher. A break of support at 1.2920 (Thursday’s low) will allow us to target lower levels at 1.2865 (50-day SMA), 1.2795 (Fibo 23.6% traced from this year low). On the upside, the target at 1.3045/50 appears to be within reach. Only after the break of these levels, the pound will be able to rise higher.

GBPUSDDaily.png

Similar

Oil: Russia-Ukraine Crisis Could Boost Oil Prices
Oil: Russia-Ukraine Crisis Could Boost Oil Prices

Crude oil futures surged on Monday due to disruptions in Russian refining capacity caused by Ukrainian drone strikes and Moscow's decision to cut output to comply with OPEC+ targets. The West Texas Intermediate (WTI) contract for May settled at $81.95 a barrel, up $1.32, while the Brent contract for May settled at $86.57 a barrel, also up $1.32. Russia instructed...

Latest news

USD: Powell Speaks on Cutting Interest Rates
USD: Powell Speaks on Cutting Interest Rates

Jerome H. Powell, the Federal Reserve chair, stated that the central bank can afford to be patient in deciding when to cut interest rates, citing easing inflation and stable economic growth. Powell emphasized the Fed's independence from political influences, particularly relevant as the election season nears. The Fed had raised interest rates to 5.3 ...

WTT: Currency Pairs To Trade In April
WTT: Currency Pairs To Trade In April

Hello again my friends, it’s time for another episode of “What to Trade,” this time, for the month of April. As usual, I present to you some of my most anticipated trade ideas for the month of April, according to my technical analysis style. I therefore encourage you to do your due diligence, as always, and manage your risks appropriately.

Deposit with your local payment systems

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.

Callback

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera