FX.co ★ Technical analysis of GBP/USD for July 3, 2015

Overview:

• The GBP/USD pair is in an uptrend forming strong support at the level of 1.5459. It should be noted that the support is coinciding with the ratio of 38.2% Fibonacci retracement levels in the H4 chart. So, the level of 1.5460 is the key level to confirm the bullish market. Moreover, according to the previous events, the GBP/USD pair is still moving between 1.5460 and 1.5713. As it is known, if the trend is upward, the strength of the currency pair will be defined as following: GBP is in uptrend and USD is in downtrend. For that, the market will probably indicate the bullish opportunity at the level of 1.5460 because the weekly support 1 will act as strong support in coming hours. Thenceforward, the GBP/USD pair will give a good sign to buy above 1.5460 with the first target at 1.5666 in order to test the daily pivot point. Also, if the trend is able to break it, it will continue towards 1.5713. However, the stop loss should never exceed your maximum exposure amounts. Accordingly, your stop loss should be placed above 1.5766. At the same time, we expect that the trend is going to call for a bearish market at the level of 1.5541. Additionally, it should be noted that the range will be about 110 pips today. Sell at 1.5541 with the first target at 1.5503, it might resume to 1.5460 in order to test the weekly support.