GBP/USD forecast – Fresh losses if rejected at 5-DMA

Jul 11, 2016

Resistance – 1.2949, 1.30, 1.3119

Support – 1.2927, 1.2880, 1.2789

• Pair’s repeated failure to sustain above 1.30 last week if followed by a failure to sustain above 1.2949 (5-DMA) today would open doors for a drop to 1.2880. A violation there would expose the latest cyclical low of 1.2789.
  

• On the higher side, 1.30 needs to be taken out on the day end closing basis as such a move would signal a short-term bottom is in place at 1.2789 and could yield a move to 1.3207 – 1.3315 levels.
  

• Yen is being sold on hopes of fiscal stimulus. The resulting uptick in the GBP/JPY may help the pair test 1.30 handle today.