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GBPUSD Forming Mini Base Ahead of Services PMI Data

Technical Analysis

 

Friday 3rd July sees the release of Services PMI data from the UK at 09.30 local time could signal a resumption of the underlying bull theme, after a corrective consolidation theme for much of this week.

With a small base forming, we see bounce risk for today and extension bias for early July.

GBPUSD Bull trend Intact (Despite Recent Correction)

A more negative consolidation tone this week through the 1.5664/60 support area, but a base has started to build ahead of 1.5546/38 retrace/ chart supports.

This leaves a bounce bias into Friday.

Furthermore, the June push through a long term retrace barrier at 1.5879 and the 1.5815 May peak leaves a bullish recovery tone into July.

For Today:

  • We see an upside bias for 1.5675; break here aims for 1.5734. maybe 1.5789, which we would look to try to cap at first.
  • But below 1.5546/38 opens risk down to 1.5484, which we would look to try to hold.

Short/ Intermediate-term Outlook – Upside Risks:

  • We see the bullish threat to 1.5930 and 1.6000.
  • Above here targets 1.6182/88 with overshoot threat closer to 1.6525.

What Changes This? Below 1.5169 signals a neutral tone, only shifting negative below 1.5087.

Risk Statement: Trading Foreign Exchange on margin carries a high level of risk and may not be suitable for all investors. The possibility exists that you could lose more than your initial deposit. The high degree of leverage can work against you as well as for you.


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