GBP/USD Daily Analysis - July 2, 2024

Fundamental Overview

There is no significant fundamental news affecting the British pound (GBP) as of July 2, 2024. This allows technical analysis to play a more prominent role in guiding trading decisions for the GBP/USD pair.

Technical Analysis

• Daily TimeframeThe GBP/USD pair has shifted from a bullish to a bearish structure. As long as the price remains below the resistance level of 1.2705, the outlook remains bearish on the daily chart.
• H4 Timeframe: The H4 chart also shows a bearish structure, though the market is currently ranging between 1.0270 and 1.2612. This range-bound behaviour suggests potential consolidation before further directional moves.

Key Levels:

• 1.2665: Identified as the Quasimodo Level (QML), a significant level for potential short positions.
• 1.2705: Marked as the double top and H4 resistance level, another critical level for considering short positions.

Given the prevailing bearish trends on both the daily and H4 timeframes, traders should focus on looking for short positions at these identified levels.

Chart Analysis

With no major fundamental news influencing the GBP, the technical bearish outlook is reinforced. Therefore, seeking short positions at 1.2665 and 1.2705 could provide favorable trading opportunities.

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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