The British pound continues to hold onto gains above the 1.3200 level against the US dollar, as traders factor in a possible rate hike from the Bank of England in August.
The GBPUSD pair failed to gain traction above the 1.3300 level, as traders booked profits from the 1.3313 level.
GBPUSD buyers will look for further upside above the 1.3316 level, while sellers will try to push price below the 1.3243 level.
The GBPUSD pair remains bullish while trading above the 1.3243 level, key technical resistance is now located at the 1.3316 and 1.3390 levels.
If the GBPUSD pair moves below the 1.3243 level, key technical support can be found at the 1.3215 and 1.3194 levels.
Really like the analysis.. do you think we can break 1.34? I see you mark out 1.339, how likely is this to reach and when do you think it'll happen?
OctaFX_Official
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@ahmedzahid2799, if the UK political situation was not a complete mess, we could take our lead from the DXY.
While the DXY is moving away from the 95.0 level USD is weak, so all other USD crosses should trade accordingly.
We also have to look at the situation in Europe as GBP is tied closely to them for obvious reasons. If EURGBP should move sharply lower maybe we could get the 1.34 level on GBPUSD.
For now if you are not in a trade, maybe wait to see if 1.3200 holds or wait for a retest of 1.3300 should it break above. There is some big news in the calendar and the volumes are thin, so volatility should be expected.