The GBPUSD is cycling around 1.3250 through the week's action, with Tuesday contracting into an inside day after Monday's bearish push following the resignations of five cabinet members on Sunday over Prime Minister May's latest Brexit proposal. What are the chances for a bearish extension this Wednesday? Gain insight into this extensive 11 July GBPUSD Fundamental Analysis.
11 July, GKFX – Brexit concerns have dragged the Sterling lower once again, and five key members of the UK's parliament resigned from their posts within the UK's Brexit department at the outset of the trading week, decrying Prime Minister Theresa May's latest "third option" Brexit proposal, an agreement made at the last Exchequers meeting that the UK's Boris Johnson called a betrayal of the original Brexit referendum results, before formally handing in his resignation as the UK's Foreign Secretary. Britain's Brexit Minister David Davis also resigned from his position, along with three other members of the parliamentary Brexit team.
US prepares to bring further tariffs on China
Tariff headlines for Wednesday have seen broader market sentiment swing to the downside as the US prepares to bring further tariffs to bear on China, targeting a further $200 billion USD in Chinese goods after Friday's round-turn set of tariffs by each country saw both sides refusing to back down from their brewing trade war.
Wednesday has a thin schedule set for the GBP, with only the NEISR GDP Estimate for the three months into June expected at some point through the day, and forecast at 0.3% (last 0.2%), with June's RICS Housing Price Balance due late in the day at 23:01 GMT, and forecast at -2% versus the previous reading of -3%.
11 July GBPUSD Fundamental Analysis
The Sterling is middling across the technical landscape, and as FXStreet Chief Analyst Valeria Bednarik noted,
"the 4 hours chart for the pair presents a neutral to negative stance, as it met selling interest at around 1.3300, where the pair also has the 200 EMA, and now trades around a flat 20 SMA. In the same chart, technical indicators turned lower, but now lacking directional strength and within neutral levels.
The pair has an immediate support around 1.3220, where it bottomed several times during the last few hours, with a break below it, increasing chances for a bearish extension this Wednesday."
Support levels: 1.3220 1.3190 1.3155
Resistance levels: 1.3285 1.3320 1.3365
This article 11 July GBPUSD Fundamental Analysis was written by analysts at GKFX. The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice.
If such information is acted upon by you, then this should be solely at your discretion, and GKFX will not be held accountable in any way.