GBP/USD: Bears breaking every support level but where to next?
Good afternoon Traders and welcome back to EverythingFX.
The Great British Pound is currently trading at 1.22004 against the US Dollar during today's London session.
The Demise of the pound is what some people will say when taking a look at this pair. Since creating a nice double top at 1.43000 mid-2018 this pair has just been sliding, breaking through absolutely ever support level possible.
Let's take a closer look and see what exactly is going on, for starters, looking at the Daily timeframe we have seen the price come re-visit all-time lows in and around 1.21000 as marked out on the screenshot above. This is a very important level for the pair as we have only been trading at these lows a hand full of times, Question is will it hold? If we get some positive insight on Brexit I personally it will be the last time we re-visit these lows which run in tangent with the slow down we are now experiencing in America which will mean a weaker dollar going forward.
On a technical Picture, I do need to see weekly candlestick closer back above our psychological level of 1.22500 which would validate bullish momentum back for the pair. I will not be focusing too much attention on the lower timeframes until then. If we were to break the level of support at 1.20000 it could be a free fall down to 1.15000 but we would need drastic changes to politically for that to happen.
Now that we have taken a look at the political and technical picture lets have a glance at the fundamentals for both pairs. Later this even we have Fed Member Bullard who will speak at 17:00 GMT who could potentially shed some light on the Fed's stance going forward. Thursday we have initial jobless claims out in the US with a consensus of 215K. Which then leads us onto Friday which will be the busiest day for the pair. We have UK GDP at 09:30 GMT as well as US PPI's at 13:30 GMT. Eyes will still be cast on the New UK PM Boris Johnson for any updates/comments on the Brexit deal. Stay tuned to our market news section as well as our twitter feed and social media accounts for further updates!