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.

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