GBPUSD Breaks Neckline
The double top trade in GBPUSD in underway now with price having broken through the neckline of the pattern and the last horizontal support at 1.38. With MACD and RSI both negative here, the focus is on a further roll over and a break below the 1.3676 level initially targeting 1.3461 beyond.
While the UK government has confirmed that lockdown will end on July 19th, the market so far seems to not be putting too much faith (or optimism) in this development. With the BOE sticking to its guns over inflation, squashing the near term likelihood of tapering, and with concerns growing regarding the delta variant, there are more near term GBP downside risks here though this view will be negated on any pop above 1.3997
Key Data to Watch
Little on the slate for the rest of the week. However, US employment claims later today could fuel some Dollar upside on any strong positive surprise. Tomorrow, BOE’s Bailey speaks, which is likely to be the greater focus. Any further entrenchment over inflation, or any concern over the government’s re-opening plan/delta variant, could weigh on GBP into the weekend.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.