GBP price, news and analysis:
- GBP/USD has broken convincingly to the upside from a downward-sloping channel on the daily chart that has been in place since June 10.
- Now, however, it faces a further hurdle at the psychologically-important 1.25 level and is looking overbought near-term.
GBP/USD tests resistance
GBP/USD has broken above a downward-sloping resistance line on the daily chart that marks the upper boundary of a channel in place since June 10, when the pair hit a three-month high. However, it now faces further resistance at the psychologically-important 1.25 level, which could at least slow down any further progress near-term.
Moreover, as the chart below shows, GBP/USD is now close to being overbought, with the 14-period relative strength index (RSI) hovering around the 70 level that suggests an overbought market. The pair will therefore have to not only breach 1.25 but stay there even if some short-covering emerges at that level.
GBP/USD Price Chart, One-Hour Timeframe (June 29 – July 2, 2020)
Chart by IG (You can click on it for a larger image)
Recommended by Martin Essex, MSTA
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From a fundamental perspective, the progress of GBP/USD – like most other assets – will depend on this session’s US non-farm payrolls data. Strong US jobs growth in June is expected but there is little consensus among analysts about how large the increase will be.
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of clients are net long. of clients are net short.
— Written by Martin Essex, Analyst and Editor
Feel free to contact me on Twitter @MartinSEssex