GBPUSD Outlook: Upside Potential and Critical Support Levels

10 juil.

GBPUSD – technical overview

Signs have emerged of the market wanting to put in a longer-term base after collapsing to a record low in September 2022. The door is now open for the next major upside extension towards the 2023 high at 1.3143. Any setbacks should be well supported ahead of 1.2000.

• R2 1.2894 – 8 March/2024 high – Strong
  
• R1 1.2861 – 12 June high – Medium
  
• S1 1.2740 – 4 July low – Medium
  
• S2 1.2668 – 3 July low – Medium
  

GBPUSD – fundamental overview

The Pound slumped on Tuesday after retailers reported slower sales. Meanwhile, the Labour government's immediate push for an increase in the minimum wage was also seen steepening the Gilt curve. Absence of first tier data on Wednesday’s calendar will leave the focus on another round of Fed Chair testimony and some Fed speak.

Exclusive FX research from LMAX Group Market Strategist, Joel Kruger