The GBPUSD is trading flat near the 1.3200 technical level, continuing last Friday’s subdued action after seeing bulls struggle to keep the major pair on-balance through last week’s action, slipping from a peak of 1.3212. What should traders expect of the bearish momentum? This and more are highlighted in the following 30 July GBPUSD Fundamental Drivers Expectations.
30 July, GKFX – Brexit concerns are holding in the middle for the time being, with negotiations between the UK and the EU slated to resume in mid-August.
Brexit negotiations Outlook
Pound bulls will be hoping for a much-needed positive showing from Prime Minister Theresa May, who has personally taken over the negotiations process after her latest Brexit proposal was soundly rejected by the European Union.
Hard-line Brexiteers within the UK’s parliament are unsatisfied with the PM’s apparent willingness to make concessions to the EU’s Brexit negotiators, and odds of a hard-landing Brexit scenario in March rest on the shoulders of Britain’s staunch leavers, with PM May caught between two sides, neither of which appears willing to make concessions.
Potential BoE rate hike looms ahead
Monday is a quiet showing for the GBPUSD on the economic calendar, with the GFK Consumer Confidence Survey expected for the UK late at 23:01 (forecast to hold steady at -9), as well as Pending Home Sales for the USD at 14:00 GMT, expected to tick up from -0.5% to 1.1%.
Sterling traders this week will be looking ahead to Thursday’s big showing from the Bank of England (BoE), which is expected to make a 25 bps hike to interest rates this week.
30 July GBPUSD Fundamental Drivers Expectations
Sterling bulls continue to struggle against a backdrop of disappointing economic data for the UK and a wobbly BoE, and as noted by FXStreet’s own Valeria Bednarik:
“the daily chart for the pair showed that it attempted to recover ground beyond a mild bearish 20 DMA, but failed, with the indicator currently at around 1.3190, providing a dynamic resistance.
In the same chart, the Momentum hovers right below its 100 level, while the RSI turned flat around 43, all of which skews the risk toward the downside without confirming it just yet.
Shorter term, and according to the 4 hours chart, the pair also presents a neutral-to-bearish stance, having held Friday below a directionless 20 SMA and with technical indicators heading nowhere within negative levels.
The bearish momentum will likely increase on a break below 1.3045, a static strong support.”
Support levels: 1.3090 1.3045 1.3010
Resistance levels: 1.3145 1.3190 1.3230
This article 30 July GBPUSD Fundamental Drivers Expectations 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.
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