Expected fall of the GBP/USD

20 ก.ค. 2021

Yesterday GBPUSD fell through MA 200 at 1.3694 and fell through double bottom at 1.3670. This is quite significant, since there isn't any clear stops below that could slow or stop a fall towards round number of 1.3. It might as well make a small stop at 1.35, pound does like it's round numbers. This drop helps confirm double top at 1.4245. For this move to continue a weekly close below 1.365 is needed. From fundamental view point, BOE is unlikely to tighten, since Covid numbers are extremely high, even thought deaths and hospitalizations remain low, there is still a lot of uncertainty. Also Stock markets are close to record heights, market has made new records for months with retrace, it might just as well be coming. Suggesting to check stochastics on 1h and 15min charts to open a short with a SL just above 1.37.