GBP/USD Technical Analysis: August 2, 2018
The British currency had a pullback earlier amid trading course yesterday, however, the level below 1.31 seems to be supportive and rebounded within 30 pips through the American session. According to forecast, the 1.31 region will continue to have support with the involvement of the Bank of England, since such large moves are impossible with this market. Moreover, the short-term pullbacks would likely open doors for buying opportunities, but the next scenario will be determined by the statement from London. Interest rate hike is further anticipated, making the statement more attractive to the traders’ attention.
When the UK’s central bank lifted its rates in the future, the British pound will gain optimism but it seems to be some kind of “one and done” scenario and may result to some selloff. The 1.32 region above will be the resistance, but a cut through on top of that level would push a move higher.
While a gap lower than the 1.31 mark would search for a significant support around 1.30 zone. An area that is considered to be supportive in the longer term and could offer a lot of opportunities to acquire major value.
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