The GBP/USD pair has fallen during the previous week, breaking below the 1.25 handle. That’s an area that of course attracts a lot of attention due to the fact that it is such a large, round, psychologically important figure. The candle stick from last week of course is a hammer, and then show signs of support. If we can break above the top of that hammer, then that is a buying signal.
A break above that candlestick should send this market towards the 1.2750 level, an area that has been resistance several times. If we can break above there, then the market is free to go to the 1.30 level after that. Having said that, if we turn around and break down below the hammer, that would be a very negative sign, suggesting that the support has given way.
Another thing that should be paid attention to is that the Moving Average Convergence Divergence is rising, while Price had been falling but now looks to be stabilizing. This can quite often be the sign of a trend change, and that would of course be a monumental event. Keep in mind that although the Brexit continues, people are starting to pay attention to the Federal Reserve and potential rate cuts. They are expected to cut rates by at least 25 basis points during the month of July, and now it will come down to statements and hints as to whether or not there will be more cuts. Obviously, the Brexit headlines could change things, but short-term it certainly looks as if we may get a little bit of positivity.
However, if we were to break down below the bottom of the candle stick for the week, that could open up the door to the 1.2250 level underneath. After that, we could go down to the 1.20 level next. This looks like a market that is trying to turn things around, so by all means pay attention to the weekly candle stick that just closed.
A break above that candlestick should send this market towards the 1.2750 level, an area that has been resistance several times. If we can break above there, then the market is free to go to the 1.30 level after that. Having said that, if we turn around and break down below the hammer, that would be a very negative sign, suggesting that the support has given way.
Another thing that should be paid attention to is that the Moving Average Convergence Divergence is rising, while Price had been falling but now looks to be stabilizing. This can quite often be the sign of a trend change, and that would of course be a monumental event. Keep in mind that although the Brexit continues, people are starting to pay attention to the Federal Reserve and potential rate cuts. They are expected to cut rates by at least 25 basis points during the month of July, and now it will come down to statements and hints as to whether or not there will be more cuts. Obviously, the Brexit headlines could change things, but short-term it certainly looks as if we may get a little bit of positivity.
However, if we were to break down below the bottom of the candle stick for the week, that could open up the door to the 1.2250 level underneath. After that, we could go down to the 1.20 level next. This looks like a market that is trying to turn things around, so by all means pay attention to the weekly candle stick that just closed.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.