THE FOREX TRENDS
Revealing the World of Forex: Expert Analysis and Secrets of successful trading
As of July 5, 2024, there is no significant fundamental news directly impacting the British pound (GBP) for the current and upcoming week. However, notable developments concerning the US dollar (USD) are influencing the GBP/USD currency pair. Key economic indicators such as the Non-Farm Employment Change and Unemployment Rate for the USD have shown mixed results. Despite indications from the Federal Reserve that US inflation is cooling, it is still far from reaching the desired levels. This scenario fosters a bearish sentiment towards the USD, potentially favoring the GBP.
On the GBP side, recent data from the UK shows steady economic growth, with the latest GDP figures indicating a slight increase. The Bank of England's (BoE) stance remains cautiously optimistic, maintaining interest rates while closely monitoring inflation. Although inflation is slightly above the BoE's target, it is expected to stabilize in the coming months. Additionally, the UK's labor market remains robust, with unemployment rates at historic lows, providing further support for the GBP.
The GBP/USD pair has transitioned from a bearish to a bullish structure following a breakout above the 1.2700 level. As long as the price remains above the support level of 1.2705, the outlook remains bullish on the daily chart.
The H4 chart indicates a bullish trend following a period of consolidation and breakout.
The next resistance level is around 1.2810. A further upside move is anticipated after a breakout of this level. Conversely, a retracement to the 1.2760-1.2770 range could occur, which may be viewed as a trend continuation level, contingent on price action confirmation from the chart.
The overall bias remains bullish as long as the price stays above 1.2760. Given the prevailing bullish trends on both the daily and H4 timeframes, traders should consider long positions while the price remains above 1.2760.
This analysis provides a comprehensive outlook on GBP/USD. It's essential to perform your own analysis and practice on a demo account before engaging in live trading. The market can be unpredictable, and proper preparation is crucial for success.
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