In the American session, the GBP / USD pair is trading at 1.3747 at the time of writing this article. We note that the price is approaching the 1/8 murray reversal zone. GBP is likely to make a good technical bounce in this area.
The British pound has formed a descending wedge pattern. As you can observe on the chart, this technical figure is about to be complete soon. Therefore, a break above the descending channel of the pattern, around 1.3770 will be a good opportunity to buy with targets at 1.3855.
As long as the GBP / USD pair is above the strong support of 1/8 (1.3732) of murray, there is the possibility of a correction and a new bullish momentum in the short term, up to levels of 1.3916 (4/8).
Conversely, the British pound has to close below 1.3735 before a sustained decline can be expected. Our outlook of the British pound is becoming more bearish. Closing below 1.3735 is unlikely due to the technical pattern mentioned above.
UK data was unimpressive as the country released the Halifax price index for June, which contracted 0.5% month-on-month, disappointing market expectations. Additionally, the UK reported more than 30,000 new coronavirus cases.
The eagle indicator has reached a key support level in the 5-10 zone, showing an imminent technical bounce in the next few hours.
Therefore, our recommendation is to buy above 1/8 of a murray at 1.3747 or expect a consolidation above 1.3770, with targets at 1.3805 and 1.3855 (3/8).
Support and Resistance Levels for July 08 - 09, 2021
Resistance (3) 1.3883
Resistance (2) 1.3838
Resistance (1) 1.3795
----------------------------
Support (1) 1.3727
Support (2) 1.3662
Support (3) 1.3624
***********************************************************
Trading tip for GBP/USD for July 08 - 09, 2021
Buy above 1.3747, with take profit at 1.3805 and 1.3855 (3/8), stop loss below 1.3712.
Buy if breaks the descending wedge at 1.3770, with take profit at 1.3855 (3/8), stop loss below 1.3732.
The material has been provided by InstaForex Company - www.instaforex.com