On 3rd August we published our bearish views on the cables against US dollar, expecting that the pound have the strength enough to tackle King Dollars strength last week and is just a few pips away from our targeted destination. We were in a slight state of ambiguity because of GBPUSD not providing a clear breakout or prominent price action mingle to purely rely on. We anticipated that in the weekly time frame, keeping the impuslive bearish wig which touched exponential moving average 50 and reversed - did actually break out of the price action but no bearish fractal confirmation was found with a closing below our weekly low. The aforementioned statement showed strength being shared between both the bulls and bears in terms of neutrality on a temporary note. But now the scenario is a bit more clear with the Pound giving up against King dollar and turned red during US trading hours, currently trading around the 1.38350 price zone. The dollar got a boost from the US Senate passing the $ 1 billion infrastructure bill.

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

From a technical point of view, the GBP/USD pair is bearish. The four hour chart shows that it is developing below a bearish 20 SMA while finding support in directionless and converging 100 and 200 SMAs. Technical indicators consolidate within negative levels, with modest downward slopes, reflecting that sellers hold the grip. Further declines are likely once the pair breaks below 1.3820, the immediate support level. According to fundamentals, Data-wise, UK published the July BRC Like-For-Like Retail Sales, which were up a modest 4.7% YoY, missing the expected 13.1% and contracting from 6.7% in the previous month. The country won’t publish relevant macroeconomic data, while the US will release the preliminary estimates of Q2 Nonfarm Productivity and Unit Labor Cost.

GBPUSD isnt done with entertaining the bears yet !

Aug 10 2021