GBP/USD Forecast Today 10/7: Runs Into Resistance (Video)
Date
7/10/2024 4:56:37 AM
(MENAFN- Daily Forex)
In my daily British pound, US dollar analysis, it's hard not to notice that we are banging up against the 1.28 level. Yet again, this is an area that's been massive resistance multiple times, and I do think that the exhaustion that we had seen during the Monday session probably reiterates the fact that we could very well pull back from here. That being said, if we can break above the 1.2850 level, it's possible that we could break out to the upside and go as high as 1.30 above. This is a large, round, psychologically important number.
Moving Averages
We do have the Producer's Price Index and the Consumer Price Index numbers coming out of the United States at the end of the week, and that could be the final determinant. In the short term, I would anticipate that there is a short-term pullback just waiting to happen, but I would also anticipate that the 1.27 level will more likely than not end up being an area where a lot of people will be looking for value based on the 50 day EMA coming into the picture.
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Just under there at the 1.2633 level, we have already seen a bit of a bounce anyway. So ultimately, I think you get short-term weakness followed by a buy on the dip opportunity, unless inflation numbers in the United States come out stronger than anticipated.
It does look a little bit like an inverted head and shoulder. So that's worth paying attention to. If we were to break out to the upside, the measured move of that is about to the 1.33 level, but we are exhausted in the short term. We went straight up in the air, and I think we probably continue to see a little bit of hesitation before we even attempt that. In other words, GBP/USD is essentially a“two speed” financial market , and I think that continues to be the case going forward. Those who are short-term inclined might be sellers, but longer-term traders look likely to find a reason to get long.
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