GBPUSD Weekly Outlook: New perspective for the week | Follow-up
Updated
The GBPUSD pair faced downward pressure last week due to a dampened economic outlook caused by the Bank of England's aggressive policy amid fears of a recession. Despite this, overall sentiment for Pound Sterling remains bullish, as the UK central bank may consider more interest-rate hikes to tackle inflation.
In June, UK's Consumer Price Index (CPI) softened to 7.9%, with core CPI, excluding volatile food and energy prices, falling to 6.9%. However, these declines are not enough for the BoE to declare victory over inflation. On August 3, the BoE is expected to raise interest rates despite rising recession concerns and the challenges faced by businesses.
Conversely, the dollar surged on Thursday as data showed the U.S. economy grew faster than expected in the second quarter, reducing the likelihood of a recession in the second half of the year. This could potentially lead to further interest rate hikes by the Federal Reserve if the strong economic performance continues.
GBPUSD Technical Analysis:
Will the pound find support at the current confluence at $1.28500, or is a breakdown imminent, inciting a potential sell-off? Be prepared as the BoE interest rate decision draws near it may trigger sharp price movements in the pound.
In this video, We analyze the Daily and 4-hour timeframe, exploring both bullish and bearish sentiments to uncover promising trading opportunities for the week ahead. Key levels, trendlines, and support/resistance points was examined to reveal essential insights into the current market structure.
Don't miss the key level at $1.28500, sharing a critical confluence with the ascending trendline in the 4H timeframe. As we stand at a juncture where both sellers and buyers hold sway, the market's reaction to this zone will determine the direction of price action in the upcoming days.
Stay connected and engage in the comment section to remain updated on the latest developments. Thank you for watching, and get ready for more enlightening insights into GBPUSD in our upcoming content. Prepare for a thrilling journey ahead!
Disclaimer:
Trading on margin in the foreign exchange market (including commodities, CFDs, stocks, etc.) carries a high level of risk and may not be suitable for all investors. The content of this speculation (including all data) is provided by me for educational and informational purposes only to assist in making independent investment decisions. All information presented here is for reference purposes only, and I do not accept any responsibility for its accuracy.
It is important that you carefully consider your investment experience, financial situation, investment objectives, and risk tolerance level, and seek advice from an independent financial advisor to assess the suitability of your situation before making any investment.
I do not guarantee the accuracy of the information provided and shall not be held liable for any loss or damage that may arise directly or indirectly from the content or the receipt of any instructions or notifications related to it.
Please note that past performance is not necessarily indicative of future results
In June, UK's Consumer Price Index (CPI) softened to 7.9%, with core CPI, excluding volatile food and energy prices, falling to 6.9%. However, these declines are not enough for the BoE to declare victory over inflation. On August 3, the BoE is expected to raise interest rates despite rising recession concerns and the challenges faced by businesses.
Conversely, the dollar surged on Thursday as data showed the U.S. economy grew faster than expected in the second quarter, reducing the likelihood of a recession in the second half of the year. This could potentially lead to further interest rate hikes by the Federal Reserve if the strong economic performance continues.
GBPUSD Technical Analysis:
Will the pound find support at the current confluence at $1.28500, or is a breakdown imminent, inciting a potential sell-off? Be prepared as the BoE interest rate decision draws near it may trigger sharp price movements in the pound.
In this video, We analyze the Daily and 4-hour timeframe, exploring both bullish and bearish sentiments to uncover promising trading opportunities for the week ahead. Key levels, trendlines, and support/resistance points was examined to reveal essential insights into the current market structure.
Don't miss the key level at $1.28500, sharing a critical confluence with the ascending trendline in the 4H timeframe. As we stand at a juncture where both sellers and buyers hold sway, the market's reaction to this zone will determine the direction of price action in the upcoming days.
Stay connected and engage in the comment section to remain updated on the latest developments. Thank you for watching, and get ready for more enlightening insights into GBPUSD in our upcoming content. Prepare for a thrilling journey ahead!
Disclaimer:
Trading on margin in the foreign exchange market (including commodities, CFDs, stocks, etc.) carries a high level of risk and may not be suitable for all investors. The content of this speculation (including all data) is provided by me for educational and informational purposes only to assist in making independent investment decisions. All information presented here is for reference purposes only, and I do not accept any responsibility for its accuracy.
It is important that you carefully consider your investment experience, financial situation, investment objectives, and risk tolerance level, and seek advice from an independent financial advisor to assess the suitability of your situation before making any investment.
I do not guarantee the accuracy of the information provided and shall not be held liable for any loss or damage that may arise directly or indirectly from the content or the receipt of any instructions or notifications related to it.
Please note that past performance is not necessarily indicative of future results
Note
As we approach the BoE interest rate decision on Wednesday, GBPUSD's price action has been confined within the levels of $1.28600 and $1.28450, signaling a significant level of indecision over the last 10 hours. Notably, the video mentioned that the price is currently situated above a potential accumulation zone and an ascending trendline. A breakout/retest of the $1.28600 level could trigger an upward continuation, while we must also consider the potential sellers' impact, as a breakdown/retest of the $1.28450 level might lead to a sell-off. We'll delve into a more comprehensive analysis of these scenarios during our upcoming live session. Stay tuned for further insights and discussions.Good Morning
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Following the buy trigger at the $1.28600 level, there were a couple of stop-losses triggered before the price eventually moved below $1.28450, prompting a sell position. As a new wave of buying pressure emerges around $1.28150, it is crucial to maintain a secure sell position, considering that the price remains within the accumulation zone identified in the video. Cautionary measures should be exercised.Despite the recent bearish movement, the potential for a bullish momentum still remains noteworthy. We will delve into a detailed discussion of the current market structure during our live session today. Be sure to join us for valuable insights and analysis.
Happy new month!
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UPDATEMore sell positions triggered; secure positions
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UPDATETwo positions running with 140 pips; secure positions
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After experiencing robust bearish momentum at the beginning of the week, which yielded more than 160 pips in profit from two positions, the GBPUSD market is now witnessing a resurgence of buying pressure. This is evident as higher lows re-emerge, signaling the potential for a bullish momentum buildup, especially ahead of the ADP employment change data release from the US economic docket.Notably, the price action seems to be transitioning into a reversal pattern, resembling a double bottom formation, as sellers struggle to push below the crucial $1.27840 zone. Additionally, a neckline has been identified, which aligns with the descending trendline. A successful breakout/retest of this neckline could create favorable buying opportunities for traders.
Good Morning
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We've achieved a remarkable gain of 130 pips across two positions! It's time to secure all sell positions as we eagerly await the BoE interest rate decision today. In our upcoming live session this morning, we will dissect this market structure for more clarity and explore potential trading opportunities ahead of this event. Good Morning
Trade closed: target reached
TP target hit with an impressive 300 pips from 3 positions! Now, let's shift our focus to the aftermath of the 25 basis point rate hike from the BoE, which unfolded as expected. As a result, buying pressure is starting to emerge, evident from the sharp rejection of the $1.26300 level.As we discussed during our live session this morning, the breakout/retest of the $1.27000 level remains a significant factor for potential buying opportunities. However, we should also be alert to the possibility of selling opportunities if selling pressure persists and leads to a breakdown/retest of the $1.26300 level.
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As the Pound Sterling faces challenges in gaining traction despite the recent interest rate hike from the BoE, it's prudent to secure all buy positions. Moving forward, we'll closely monitor price action to confirm the presence of bullish momentum.Good Morning
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UPDATESecure all buy positions
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