Focus on GBPUSD today – 23rd July 2024 

In this comprehensive analysis, Ultima Markets brings you an insightful breakdown of the GBPUSD for July 23 2024. 

Key Takeaways 

• Long-term appreciation momentum: Pound sterling was the best performing currency for the year, buoyed by better-than-expected economic growth. However, its persistently high inflation has created a conundrum for the Bank of England, preventing them from cutting interest rates significantly. Likewise, the victory of Labor Party in the recent general election has sparked optimism towards UK’s economy, lending further support to the pound sterling.  

• Short-term depreciation drivers: The UK will release July PMI data on Wednesday. After entering the second quarter, the UK PMI data began to gradually decline. The further decline in the service industry PMI in June showed that UK inflation will continue to decline. If the UK service industry PMI continues to decline this week, the probability of the Bank of England cutting interest rates in August will soar, and the pound will be under great downward pressure at that time. 

Technical Analysis 

Daily Chart Insights 

• Stochastic Oscillator: The indicator sends a short signal in the overbought area, and then the fast and slow lines quickly leave the overbought area, suggesting that the current downward correction trend is strong. 

• Price Action: After GBP/USD touched the upward channel line, bearish engulfing price behavior appeared. The candle line that continued to fall subsequently made it clear that the downward adjustment trend was coming. In the short term, it is necessary to focus on short selling. 

• Fair value gap: Yesterday, the exchange rate rebounded after touching the upper side of the fair value gap. After waiting for further bearish structures to appear in the small cycle, you can pay attention to the opportunity to enter the market and short sell. The target is below the fair value gap. 

H1 Chart Insights 

• Stochastic Oscillator: The indicator is still in the upward rebound potential. Wait for the indicator to send a short signal after entering the overbought area. At that time, you can pay attention to the short selling trading opportunities again. 

• Resistance area: GBP/USD is currently in the adjustment stage of the rising flag oscillation. If the exchange rate continues to rebound, it will look to the upper edge of the flag. The extreme resistance price will look near the red long-short conversion area. 

Pivot Indicator 

• According to the trading central in Ultima Markets APP, the central price of the day is established at 1.2905, 

• Bullish Scenario: Bullish sentiment prevails above 1.2905, first target 1.2945, second target 1.2960; 

• Bearish Outlook: In a bearish scenario below 1.2905, first target 1.2890, second target 1.2875. 

Conclusion 

To navigate the complex world of trading successfully, it’s imperative to stay informed and make data-driven decisions. Ultima Markets remains dedicated to providing you with valuable insights to empower your financial journey. 

For personalized guidance tailored to your specific financial situation, please do not hesitate to contact Ultima Markets. 

Join Ultima Markets today and access a comprehensive trading ecosystem equipped with the tools and knowledge needed to thrive in the financial markets. 

Stay tuned for more updates and analyses from our team of experts at Ultima Markets. 

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Disclaimer   

Comments, news, research, analysis, price, and all information contained in the article only serve as general information for readers and do not suggest any advice. Ultima Markets has taken reasonable measures to provide up-to-date information, but cannot guarantee accuracy, and may modify without notice. Ultima Markets will not be responsible for any loss incurred due to the application of the information provided.