Crises and Opportunities Coexist as GBP/USD Breaks Above 1.34

Summary:

A survey released Thursday showed that wages in the UK remained stable in the three months through May, indicating that domestic wage pressures—which the Bank of England closely monitors—have yet to ease significantly.

SELL GBPUSD

EXP

TRADING

1.34253

Entry Price

1.28000

1.36000

1.34132 +0.00058 +0.04%

0.0

Pips

Flat

1.28000

Exit Price

1.34253

Entry Price

1.36000

Fundamentals

In terms of energy sources, the United Kingdom is more dependent on energy imports than most of its European neighbors, making the pound relatively sensitive to fluctuations in crude oil prices. Since oil prices began a sustained pullback from above $120 per barrel in May, market expectations for a Bank of England rate hike this year have cooled significantly. Money market pricing indicates that traders currently expect the Bank of England to raise rates at least once this year, with the probability of a second hike standing at about 25 percent—far below the market expectations of three hikes just a few weeks ago.

Data released Thursday by the U.S. Department of Labor showed that for the week ending July 4, the seasonally adjusted number of initial claims for state unemployment benefits fell by 2,000 from the previous week to 215,000, below economists’ prior forecast of 218,000. Although job growth slowed significantly in June and the nonfarm payroll data for April and May were revised downward, the latest claims figures indicate that the labor market has not undergone any substantial changes and remains in a stable state with neither hiring nor layoffs occurring at a significant pace.

Technical Analysis

On the daily chart, the GBP/USD pair shows Bollinger Bands beginning to narrow, with moving averages flattening out, indicating a potential reversal at any moment. The RSI stands at 59, suggesting a predominantly optimistic market sentiment. On the four-hour chart, the Bollinger Bands are widening upward, moving averages are diverging upward, and the upward momentum of the MACD has weakened, making a further decline highly likely. The RSI stands at 64, indicating a market dominated by buyers. The trading strategy is to sell on rallies.

Crises and Opportunities Coexist as GBP/USD Breaks Above 1.34_1

Crises and Opportunities Coexist as GBP/USD Breaks Above 1.34_2

Trading Recommendation

Trading Direction: Sell

Entry Price: 1.342

Target Price: 1.28

Stop-Loss Price: 1.36

Support Levels: 1.32, 1.3, 1.28

Resistance Levels: 1.37, 1.38, 1.41

Risk Warnings and Disclaimers

You understand and acknowledge that there is a high degree of risk involved in trading. Following any strategies or investment methods may lead to potential losses. The content on the site is provided by our contributors and analysts for information purposes only. You are solely responsible for determining whether any trading assets, securities, strategy, or any other product is suitable for investing based on your own investment objectives and financial situation.

Risk Disclosure

The risk of loss in trading financial instruments such as stocks, FX, commodities, futures, bonds, ETFs and crypto can be substantial. You may sustain a total loss of the funds that you deposit with your broker. Therefore, you should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources.

No decision to invest should be made without thoroughly conducting due diligence by yourself or consulting with your financial advisors. Our web content might not suit you since we don't know your financial conditions and investment needs. Our financial information might have latency or contain inaccuracy, so you should be fully responsible for any of your trading and investment decisions. The company will not be responsible for your capital loss.

Without getting permission from the website, you are not allowed to copy the website's graphics, texts, or trademarks. Intellectual property rights in the content or data incorporated into this website belong to its providers and exchange merchants.

Recent Searches

Top Searches

Markets

Analysis

User

24/7

Economic Calendar

Education

Data

Crises and Opportunities Coexist as GBP/USD Breaks Above 1.34

Risk Disclosure