GBP/USD

William Gomez

Analyst

July 20, 2017

GBP/USD:

This market has been moving steadily in the direction of the bears with respect to it's AB boundary, and seems to be back in alignement with the USDOLLAR. The USDOLLAR reacted poorly to Friday's CPI and Retail Sales announcements. CPI remained unchanged,  and not much better can be said for Retails Sales. This furter brings into question how the Fed will handle the direction of the greenback for the remaining two quarters of the year. However, there are still many economists that believe that this is simply temporary and that the USDOLLAR will recover with the additional planned rate hikes, and wage increases. As for the technical indicators, the USDOLLAR has finally reached a deep C, fulfilled a sub abcd retracement while it was at it, and the Stochoastic RSI has moved squarely into the oversold zone. All of the these pointing firmly at an impending rally possibility. Expect USD QUOTE currencies to DIP and USD BASE currencies to RALLY as the USDOLLAR APPRECIATES.

BEARISH

Daily Trading Range: 79

Daily Support and Resistance

Resistance 3: 1.3120
Resistance 2: 1.3050
Resistance 1: 1.2980
Current Price 1.0120
Support 1: 1.2590
Support 2: 1.2360
Support 3: 1.2110

Daily Chart

Daily Chart

Two Hour Chart

Two Hour Chart