Double Top Breakout
The GBP/USD was closed at $1.3845 after placing a high of $1.3863 and a low of $1.3817. GBP/USD extended its gains for the third consecutive session on Monday amid weakness in the U.S. dollar. The British Pound found support on comments from the U.K. Prime Minister Boris Johnson, who announced that all restrictive measures would be lifted on July 19. Johnson said that while the country was still very far from the end of the pandemic, it was now or never to raise restrictive measures by taking advantage of the vaccine roll-out.
Johnson also noted that people would not be instructed to work from home despite the rising number of coronavirus. However, a final decision will be made on July 12. Restrictions were decided to lift in the upcoming days. However, border control was being maintained for the time being along with the red list of U.K. Johnson stated that he had plans to work with the travel industry to lift the quarantine restriction for fully vaccinated travelers upon arrival from amber list countries. Under the plans, nightclubs will be allowed to reopen, and there will be no limits on the capacity for hospitality venues. He also said that people under 40 would be requested for their second COVID-19 shots from eight weeks following their first dose, rather than 12 weeks.
There was no macroeconomic data on the data front to be released from the U.S. because of the national holiday for Independence Day. However, from the British side, at 13:30 GMT, the Final Services PMI in June rose to 62.4 against the expected 61.7 and supported British Pound that added further upward momentum in GBP/USD. Meanwhile, the BOE (Bank of England) has said that it will only require staff to operate in the office one day a week from September, in contrast to many City banks asking their workers to return to work on a full-time basis.
GBP/USD Intraday Technical Levels
Support Resistance
1.3821 1.3867
1.3797 1.3887
1.3776 1.3912
Pivot Point: 1.3842
GBP/USD - Technical Outlook
The GBP/USD pair is trading with a bullish bias at the 1.3883 level. The Cable has violated the double top resistance level of 1.3772 level, and the bullish crossover of this level exposes the pair towards the next target area of 1.3926 level. The support level continues to stay at 1.3872 level along with a resistance area of 1.3926 level. The 50 EMA supports the Sterling at the 1.3840 level, suggesting a robust bullish bias among investors. The pair has also entered the overbought zone; therefore, a slight bearish correction is imminent. The MACD is still supporting buying trends in the GBP/USD pair. Therefore, the traders will be keeping their eyes on 1.3870. All the best!
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