empty
 
 
You are about to leave
www.instaforex.eu >
a website operated by
INSTANT TRADING EU LTD
Open Account

29.06.202215:41 Forex Analysis & Reviews: GBP/USD: downside continuation signaled

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

The GBP/USD pair dropped as the Dollar Index rallied in the short term. It was trading at 1.2166 at the time of writing above 1.2141 today's low. The currency pair tries to come back higher as the DXY reached a resistance level. Only DXY's further growth should push the GBP/USD lower.

Fundamentally, the US data came in mixed earlier. The Final GDP registered a 1.6% drop versus the 1.5% expected, while the Final GDP Price Index rose by 8.2% exceeding the 8.1% estimates. Also, don't forget that Fed Chair Powell and BOE Gov Bailey's speeches could bring more volatility and sharp movements.

GBP/USD Validates Its Breakdown!

Exchange Rates 29.06.2022 analysis

Technically, the GBP/USD pair was trapped between the 1.2324 and 1.2165 levels. Its failure to make a new higher high signaled a downside breakout from this range. As you can see on the H1 chart, the rate dropped below this downside obstacle and now it tries to retest this key level.

Personally, I've drawn a minor downtrend line. As long as it stays under this line, the GBP/USD pair could drop deeper.

GBP/USD Outlook!

The valid breakdown below 1.2208 signaled a potential breakdown below the 1.2165 critical support as well. The current 1.2165 retests could announce more declines. A false breakout above this level and a new lower low, a bearish closure below 1.2141 could open the door for a larger drop and could bring new short opportunities with a potential downside target at 1.2100.

Ralph Shedler
Analytical expert of InstaForex
© 2007-2024

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.




You are now leaving www.instaforex.eu, a website operated by INSTANT TRADING EU LTD
Can't speak right now?
Ask your question in the chat.

Turn "Do Not Track" off