Bullish Pound, aiming higher (GBPUSD Forecast)

Intermediate
  • The Pound against the US Dollar Forex rate, GBPUSD has sustained a positive tone.
  • This has been assisted by the weaker US Dollar, with global asset classes extending the July “risk on” theme.
  • The “risk on” phase has been buoyed this week by the EU Recovery Fund agreement this week, as well as by ongoing speculation from positive trials for both treatments of and a vaccine for COVID-19.
  • This leaves the asymmetric risks for further GBPUSD gains today for latter July and possibly into August.

GBPUSD day trade outlook: Dip and firm rebound leaves bullish tone 

A sell-off and firm rebound Wednesday from new support established at 1.2644, to build on this week’s strong advance above the 1.2650/69, 1.2685/87, 1.2719 and 1.2754 resistances, plus the topping line from early June, to keep the risk to the upside into Thursday.

Day trade setup

  • We see an upside bias for 1.2768 and the cycle high at 1.2813; a break here quickly aims for 1.2849, even 1.2891.
  • But below 1.2644 aims for 1.2615 support, which we would look to try to hold; below possibly opens risk down to 1.2586.

GBPUSD intermediate-term outlook

The early July push above 1.2542 signalled an intermediate-term shift to a bull trend.

  • Upside risks: We see an intermediate-term bull trend to aim for 1.2813, 1.3000 and maybe 1.3200.
  • What changes this? Below 1.2251 shifts the intermediate-term bull trend straight to an intermediate-term bear trend.
4 Hour GBPUSD Chart
4 Hour GBPUSD Chart

Editor in chief

Steve Miley is the Market Chartist and has 29 years of financial market experience and as a seasoned expert now has many responsibilities. He is the founder, Director and Primary Analyst at The Mar... Continued

Comment on this video

Your email address will not be published. Required fields are marked *


Latest Related News

Q1/Q2 Elliott Wave views for the Forex Majors – Exclusive interview with Jim Martens!

Here is an in-depth interview with Jim Martens, Elliott Wave International's (EWI) Senior Currency Strategist and editor of the trader-focused Currency Pro Service. In this interview, we will discuss the Major currency pairs, including EURUSD, the US Dollar Index (DXY), GBPUSD, USDCHF, USDJPY, AUDUSD and USDCAD. Here is a link to a free report on trading FX with EWI. It’s normally $79 and not available on… Continued

Dollar switches trend to up

US Dollar Index aims higher (DXY forecast)Euro breaks down - EURUSD forecastMajor negatives appear on Pound (GBPUSD forecast) and Aussie (AUDUSD forecast) Continued

Bullish into 2021 with blue sweep confirmed

Macroeconomic/ geopolitical developments The Democrats won both seats in the Georgia Senate runoff elections from Wednesday, confirming a “blue sweep”, the Democrats now taking control of both houses of Congress alongside the presidency. Then, Thursday saw unprecedented and shocking events in Washington DC, with Trump supporters storming the Capitol building. The fact that President Trump appeared to incite this activity has seen his social media… Continued

Global Markets Outlook 2021

Initial Parameters: Chart analysis is technical and taken from medium-term historical patternTechnical projections based on a twelve-month time horizonTargets set are based on the most recent, significant technical adjustmentAnalysis is based on Elliot Wave and Fibonacci techniquesTechnical analysis only guides; exogenous factors can shock any marketMarkets, being capricious, forecasts are subject to revisionFundamental analysis can be commissioned on requestEquity sector analysis is thematic United States… Continued

Fresh lows on the US Dollar Index (DXY forecast)

Bull breakout on Euro (EURUSD forecast) Pound surges, breaks out (GBPUSD forecast) Aussie bull signal (AUDUSD forecast) US Dollar-CAD downtrend ends (USDCAD forecast)  Continued

Forex Brokers in your location


SIGN UP

72% of retail investor accounts lose money when trading CFDs with this provider.


SIGN UP

74-89% of retail investor accounts lose money when trading CFDs with this provider.


SIGN UP

75% of retail investor accounts lose money when trading CFDs with this provider.


SIGN UP

76.4% of retail investor accounts lose money when trading CFDs with this provider.