GBPUSD Forecast Analysis for July 11, 12, 13, 14, 15, 2016

Daily

The downtrend has strong momentum and the best way to trade GBPUSD is by selling it. For the last 2-3 days, the pair has been consolidating, but it’s unlikely that this correction will last very long. The MACD oscillator is strongly bearish and new lows are likely to be reached this week.

GBPUSD Daily chart – 50 MA (blue), 100 MA (orange) and 200 MA (red) are shown

4h timeframe

As you can see sharp plunge down and now a sideways consolidation is a channel. This is classic trend-trading and traders should look for selling price levels. The first level to sell is the upper trendline of the channel, currently at around 1.3050. It would be prudent to place the stop loss order just above this level.

While the downtrend is indeed very strong, surprises in trading happen quite often. So, if price breaks the channel to the upside and goes above 1.3050 then the next level to watch is 1.3150 which is the post-Brexit low from June 27th, and would now act as resistance.

Beyond that, the 1.3350 level is the possible next resistance, but right now it’s too early to talk about that.
If the price breaks the channel to the downside as expected, then a good target would be the 1.25 area where a lot of traders are looking to lock in profits.

GBPUSD 4h chart – A break lower looks most likely. Also confirmed by the RSI indicator, which is now out of the overbought zone