GBPUSD Weekly Outlook: New perspective for the week | Follow-up
Updated
In the previous week, the growth of the Pound Sterling unfolded before our eyes, defying the weight of higher interest rates imposed by the Bank of England (BoE) on households in the United Kingdom. Despite this burden, prices surged and fearlessly tested the psychological resistance level of 1.28500 for the third consecutive week.
Furthermore, the Pound capitalized on the U.S. non-farm payroll data falling short of expectations. On Friday, the Labor Department revealed that June saw a lower-than-expected addition of 209,000 new hires, with May's figures revised downward by 33,000 to 306,000. However, amidst this backdrop, the unemployment rate experienced a decline from 3.7% to 3.6% in June, while average hourly earnings mirrored the previous month's growth, increasing by 0.4%.
Market sentiments are strongly suggesting that the Bank of England is poised to further raise interest rates, driven by the fact that U.K. inflation remains the highest among developed nations. This sentiment could potentially fuel an ongoing uptrend as investors eagerly seek higher yield returns from the Pound.
Let's now delve into the GBPUSD Technical Analysis, specifically focusing on price action within the 4-hour timeframes. Our comprehensive analysis explores both the bullish and bearish sentiments, uncovering potential trading opportunities for the upcoming week. We meticulously examine key levels, trendlines, and support and resistance levels to unveil crucial insights into the current market structure. We are going to keep a close eye on the key level for the new week, situated at $1.28500, which underwent multiple tests in the last 3 weeks hereby revealing the presence of sellers at this critical juncture. The market's reaction to this zone at the beginning of the upcoming week will play a pivotal role in shaping the direction of price action in the days that follow.
Stay connected to the channel and actively engage in the comment section to stay informed about the latest updates and developments. Thank you for watching, and I am thrilled to provide you with further insights into my upcoming content on the GBPUSD.
Disclaimer:
Trading on margin in the foreign exchange market (including commodities, CFDs, stocks, etc.) carries a high level of risk and may not be suitable for all investors. The content of this speculation (including all data) is provided by me for educational and informational purposes only to assist in making independent investment decisions. All information presented here is for reference purposes only, and I do not accept any responsibility for its accuracy.
It is important that you carefully consider your investment experience, financial situation, investment objectives, and risk tolerance level, and seek advice from an independent financial advisor to assess the suitability of your situation before making any investment.
I do not guarantee the accuracy of the information provided and shall not be held liable for any loss or damage that may arise directly or indirectly from the content or the receipt of any instructions or notifications related to it.
Please note that past performance is not necessarily indicative of future results.
Furthermore, the Pound capitalized on the U.S. non-farm payroll data falling short of expectations. On Friday, the Labor Department revealed that June saw a lower-than-expected addition of 209,000 new hires, with May's figures revised downward by 33,000 to 306,000. However, amidst this backdrop, the unemployment rate experienced a decline from 3.7% to 3.6% in June, while average hourly earnings mirrored the previous month's growth, increasing by 0.4%.
Market sentiments are strongly suggesting that the Bank of England is poised to further raise interest rates, driven by the fact that U.K. inflation remains the highest among developed nations. This sentiment could potentially fuel an ongoing uptrend as investors eagerly seek higher yield returns from the Pound.
Let's now delve into the GBPUSD Technical Analysis, specifically focusing on price action within the 4-hour timeframes. Our comprehensive analysis explores both the bullish and bearish sentiments, uncovering potential trading opportunities for the upcoming week. We meticulously examine key levels, trendlines, and support and resistance levels to unveil crucial insights into the current market structure. We are going to keep a close eye on the key level for the new week, situated at $1.28500, which underwent multiple tests in the last 3 weeks hereby revealing the presence of sellers at this critical juncture. The market's reaction to this zone at the beginning of the upcoming week will play a pivotal role in shaping the direction of price action in the days that follow.
Stay connected to the channel and actively engage in the comment section to stay informed about the latest updates and developments. Thank you for watching, and I am thrilled to provide you with further insights into my upcoming content on the GBPUSD.
Disclaimer:
Trading on margin in the foreign exchange market (including commodities, CFDs, stocks, etc.) carries a high level of risk and may not be suitable for all investors. The content of this speculation (including all data) is provided by me for educational and informational purposes only to assist in making independent investment decisions. All information presented here is for reference purposes only, and I do not accept any responsibility for its accuracy.
It is important that you carefully consider your investment experience, financial situation, investment objectives, and risk tolerance level, and seek advice from an independent financial advisor to assess the suitability of your situation before making any investment.
I do not guarantee the accuracy of the information provided and shall not be held liable for any loss or damage that may arise directly or indirectly from the content or the receipt of any instructions or notifications related to it.
Please note that past performance is not necessarily indicative of future results.
Trade active
Following the breakdown of the first support line at $1.28200, the new week has started on a bearish note, which can be seen as a retracement of the previous week's strong bullish movement. At this point, the crucial question is how far the bearish momentum will extend before another bullish surge, or if this momentum will result in a significant sell-off. If you didn't catch the breakdown below the $1.28200 level, it's advisable to wait for a retest of the market structure, indicating selling pressure, before considering joining a bearish move. Conversely, if buying pressure resumes and a trend continuation pattern emerges, we should prepare for a potential buying opportunity. Stay tuned for an upcoming update.Good Morning
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As a result of the insights gained from our morning's live session, we currently have two profitable positions in play. It is now opportune to take action and secure these positions to lock in the gains.Trade active
UPDATEA total of 120 pips running in profit from two positions; secure position as we look out for more trading opportunities
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Sell positions closed with a modest amount of profit as we witnessed buy position triggered at the breakout of the descending trendline and the $1.28200 level.Trade active
At the moment, we have three buy positions that are yielding profits of approximately 130 pips, despite the negative economic indicators from the UK. It is now crucial to secure these positions while remaining vigilant for additional buying opportunities in case the price breaks the newly identified levels on the chart.Good Morning
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Following our discussion on this pair during our live session this morning; more positions triggered.Trade active
Secure all buy positions as selling pressure resumesTrade closed: target reached
The price successfully reaches the take-profit target, resulting in a profitable gain of more than 400 pips across four positions. As we embark on a new day, our focus shifts to the eagerly awaited release of the CPI data later today. The market's current outlook continues to exhibit a bullish sentiment, and we rely on the ascending trendline as our primary reference for trading strategies (refer to the chart for visual representation).Good Morning
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Secure sell positionTrade closed manually
As the CPI data came in below expectations, all sell positions were closed at break-even. This lower reading is typically seen as negative or bearish for the Greenback. Consequently, a bullish trigger in favor of the Pound was observed. We are now on the lookout for potential buying opportunities, either during a retest of the $1.29350 level or a breakout/retest of the $1.29700 level.Trade active
UPDATE25 pips in profit on the new buy position at the break of the $1.29700 level; secure position now
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The buy position continues to run in profit. It is essential to secure the position while eagerly anticipating the outcome of the Producer Price Index from the US economic docketGood Morning
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UPDATEBuying pressure continues; secure all buy positions
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Ensure all buy positions are secured as selling pressure resumes ahead of the Consumer Sentiment Index coming up later in the day.Good Morning
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Fall out from our live session this morning;
Trade smart. Trade consciously
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