GBPUSD Weekly Outlook: New perspective for the week | Follow-up

Trading activities witnessed the impact of Britain's cooling inflation on the pound's performance against the dollar. This is the pound's biggest one-day fall since March, coinciding with a plunge in British government bond yields as inflation slows to 7.9% in June.

As the prospect of a sustained rise in the Bank of England base rate diminishes, traders are now considering profit-taking activities. Though with rates peaking between 5.75-6.0%, the pound still offers higher yield returns compared to the United States.

Meanwhile, the dollar received a boost from positive U.S. labor market data, fueling expectations of another 25 basis points interest rate hike by the Federal Reserve. However, uncertainty remains about the central bank's next move, as we closely monitor economic reports and consumer sentiment readings.

GBPUSD Technical Analysis:
Will the pound find support at the current confluence at $1.28400, or is a breakdown imminent, inciting a potential sell-off? Be prepared as inflation eases off, as it may trigger sharp price movements in the pound.

In this video, We analyze the 4-hour timeframe, exploring both bullish and bearish sentiments to uncover promising trading opportunities for the week ahead. Key levels, trendlines, and support/resistance points will be meticulously examined to reveal essential insights into the current market structure.

Don't miss the key level at $1.38400, sharing a critical confluence with the ascending trendline in the 4H timeframe. As we stand at a juncture where both sellers and buyers hold sway, the market's reaction to this zone will determine the direction of price action in the upcoming days.

Stay connected and engage in the comment section to remain updated on the latest developments. Thank you for watching, and get ready for more enlightening insights into GBPUSD in our upcoming content. Prepare for a thrilling journey ahead!

Disclaimer:
Trading on margin in the foreign exchange market (including commodities, CFDs, stocks, etc.) carries a high level of risk and may not be suitable for all investors. The content of this speculation (including all data) is provided by me for educational and informational purposes only to assist in making independent investment decisions. All information presented here is for reference purposes only, and I do not accept any responsibility for its accuracy.

It is important that you carefully consider your investment experience, financial situation, investment objectives, and risk tolerance level, and seek advice from an independent financial advisor to assess the suitability of your situation before making any investment.

I do not guarantee the accuracy of the information provided and shall not be held liable for any loss or damage that may arise directly or indirectly from the content or the receipt of any instructions or notifications related to it.

Please note that past performance is not necessarily indicative of future results.

Comment:

Recall that in the video we focused on the significance of the key level at $1.28400 as a critical determinant of price action during the first half of the week. Since the week began, the price has consistently stayed above this key level, forming higher lows that are clearly visible through the ascending trendline. This trendline, in conjunction with the key level, will serve as a reliable gauge to identify potential uptrend trading opportunities.

However, it's essential to keep an eye on the trendline's breakdown, as it could indicate potential bearish opportunities. In such a scenario, further opportunities may arise at the breakdown/retest of the key level at $1.28400. We will delve deeper into this structure during our upcoming live session for a more comprehensive discussion.

Good Morning

Trade active:

Reflections from our live session this morning: We reached a consensus to secure the current sell position, but we also acknowledged the potential for bullish momentum arising from the newly identified demand zone around $1.28200. It was decided that further selling would only be considered if this demand zone is broken.

Adding to the discussion, a recent S&P Global publication from the UK revealed negative figures that fell below expectations. As a consequence, we observed a significant bearish move in the market.

Trade closed manually:

The sell position has been closed at a break-even point. As discussed in our live session this morning, the consistent buying pressure around the $1.28200 zone indicates the possibility of a new wave of bullish momentum, creating potential buying opportunities above the $1.28490 level. However, we must remain cautious, as a price breakdown or retest of the Temporary demand zone at $1.28200 may lead to selling opportunities instead.

Trade active:

Yesterday's discussed zone at $1.282000 seems to be acting as solid support for a bullish trend, as the price climbs above this week's key level at $1.28400. We'll be on the lookout for further buying opportunities. The only circumstance that would justify a sell is if the price breakdown/retests the demand zone.

Good Morning

Trade active:

Buying pressure persists as the $1.28200 levels continue to resist seller's attempt

Trade active:

Two buy positions running with 55 pips in the uptrend direction. Secure all positions as selling pressure resumes at the $1.29000 level ahead of the Fed's announcement later today.

Good Morning

Trade active:

Buying pressure continues, secure buy positions as we look out for more opportunities

Trade closed: target reached:

TP target hit the $1.29700 level with 420pips from 5 positions. We looking out for more opportunities at the breakout/retest of the $1.2950 for more buy positions.

Good Morning

Trade active:

As anticipated in our live session this morning, the breakdown of the ascending trendline has triggered a sell position for the first time this week. The notable catalyst behind this move is the positive GDP data from the US, which surpassed expectations at 2.4%. We advise securing the position and keeping a vigilant eye out for additional opportunities in the market.

Trade active:

UPDATE

Trade active:

UPDATE

Trade active:

Gained over 550 pips from five sell positions, and now we're securing our positions as the price action enters a consolidation phase. At this point, we need to be patient and watch for two potential scenarios. Firstly, a breakdown and retest of the new support line at $1.28700 could trigger a continuation of the downtrend. Secondly, a breakout and retest of the $1.28000 level may lead to a retracement move. We'll closely monitor the market developments and act accordingly.

Good Morning

Trade active:

UPDATE

Secure all buy positions