Bottom line: GBPUSD long term structure continues to remain bullish against 1.1414 lows print in March 2020. The currency might have carved a meaningful top around 1.3500 handle and remain in control of bears over the next few weeks. GBPUSD might push through 1.2200, which is potential support.

 Fundamental Outlook:

EURUSD had slipped to 1.1750/54 lows before finding support. The exchange rate has managed to hit 1.1915 highs over the last week after ECB kept interest rates unchanged. Further, the Euro Zone Q2 GDP clocked in marginally better than expected at -11.8%. The exchange rate might remain under pressure if US-China tensions triggers another round of selloff in stocks.

GBPUSD has dropped over 720 pips since September 01, 2020 printing 1.2763 lows on Friday. The exchange rate collapsed on Brexit woes and could remain under pressure, going further. Watch out for the Employment numbers coming out tomorrow, unemployment rate might have marginally increased in July (4.1% Vs 3.9%).

FTSE had managed to rally over the last week by +3.25%, closing in at 6027. Futures are up today and trade above 6050 as we prepare to publish. Global Indices remain vulnerable over rising US-China trade wars; TikTok sale and other tech companies might trigger another round of risk aversion. The race for US Presidency might be another event risk over the next few weeks.

Technical Analysis:

GBPUSD has reversed sharply after printing highs just below 1.3500 handle early this month. The currency has remained in control of bears as they managed to push through 1.2760 handle. Intraday pullbacks might remain well capped below 1.3500 mark, going forward.

GBPUSD had dropped to 1.1414 lows in March 2020. The currency had produced a religious rally since then and pushed through 1.3500 resistance on September 01, 2020. Please note that the entire rally between 1.1414 and 1.3500 might be potential impulse wave, which should be retraced.

The fibonacci 0.618 retracement of the above rally is seen close to 1.2200 mark. Bulls might remain inclined to regain control if prices manage to drop through above levels. A sustained drop below 1.1840 might change the structure to bearish, going forward.

Most traders might be preparing to initiate fresh short positions around 1.3200/50 levels which is resistance zone. The protective stop might be placed above 1.3500 handle with projected target towards 1.2200 respectively.

Prepared by

Harsh Japee, Technical Analyst.

GBPUSD Chart

Disclaimer: This article is reproduced from the Internet. If there is any infringement, please contact us to delete it immediately. In addition: This article only represents the personal opinion of the author and has nothing to do with Mato Finance The originality and the text and content stated in this article have not been confirmed by this site. The authenticity, completeness and timeliness of this article and all or part of the content and text are not guaranteed or promised. Please refer to it for reference only Verify the content yourself.

Copyright belongs to the author.
For commercial reprints, please contact the author for authorization. For non-commercial reprints, please indicate the source.

MyFxtops迈投(www.myfxtops.com)-靠谱的外汇跟单社区，免费跟随高手做交易！

免责声明：本文系转载自网络，如有侵犯，请联系我们立即删除，另：本文仅代表作者个人观点，与迈投财经无关。其原创性以及文中陈述文字和内容未经本站证实，对本文以及其中全部或者部分内容、文字的真实性、完整性、及时性本站不作任何保证或承诺，请读者仅作参考，并请自行核实相关内容。

著作权归作者所有。
商业转载请联系作者获得授权，非商业转载请注明出处。